DEPARTMENT  OF  THE  INTERIOR 
UNITED  STATES  RECLAMATION  SERVICE 


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MANUAL  OF 
FIELD  ACCOUNTING 


WASHINGTON 
1907 


DEPARTMENT  OF  THE  INTERIOR 
UNITED  STATES  RECLAMATION  SERVICE 


MANUAL  OF 
FIELD  ACCOUNTING 


WASHINGTON 
1907 


SRLF  t.t/:^^\^K^^ 


URL 


CONTENTS 

Page 

Letter  of  transmittal 5 

Office  equipment 7 

Organization 7 

Engineering  or  technical  section 7 

Stenographer 7 

C ost  keeper 8 

Chief  clerk's  or  accounting  section 9 

Chief  clerk 9 

Purchasing  agent 10 

Transportation  clerk 10 

Forwarding  agent 10 

Storehouse  clerk 10 

Property  inspector 11 

Stationery  clerk 11 

Mercantile  store  clerk 11 

Steward H 

Timekeepers 12 

Payroll  clerk 12 

Bookkeeper 12 

Special  fiscal  agent 12 

Stenographer 14 

General  notes  on  chief  clerk's  or  accounting  section 14 

Purchases 16 

General  directions 16 

Tracing  a  purchase  and  requisition 19 

Forms 24 

Transportation 26 

Forms 29 

Storehouses 29 

Forms -^2 

Corrals 35 

Equipment 36 

Stationery 43 

Mercantile  stores 44 

Handling  of  supplies  and  material 44 

Selling  price  on  merchandise 45 

Credits  against  accrued  wages 45 

Deductions  from  wages  of  employes 46 

Checks  on  issue  of  credits 46 

Checks  on  storekeeper 47 


Handling  cash 48 

Mess  houses 49 

Timekeeping 51 

Payrolls 55 

Forms 57 

Shop  orders 61 

Distribution  of  power 63 

The  account  number  system 64 

Controlling  accounts 73 

Books  and  forms  used  in  bookkeeping 76 

Engineering  construction  costs 83 

Project,  daily  and  monthly  feature  reports,  and  project  engineer's  cost 

data  cards 84 

Contractor's  costs 87 

Correspondence  and  letter  files 94 

Approved  by  director ^ 95 


LETTER  OF  TRANSMITTAL. 


Department  of  the  Interior, 
United  States  Reclamation  Service, 
Washington,  D.  C,  February  i8,  1907. 

Chief  Engineer, 

U.  S.  Reclamation  Service, 

Washington,  D.  C. 

Sir  :  The  committee  charged  with  the  duty  of  devising 
a  uniform  system  of  accounting  for  the  Reclamation  Serv- 
ice, with  particular  reference  to  field  operations,  begs  leave 
to  present  herewith  its  report. 

The  plan  outlined  has  been  tested  beyond  the  experi- 
mental stage,  as  the  major  portion  of  it  has  been  used  for 
considerably  over  a  year  on  the  Salt  River  project,  and  for 
several  months  on  the  Yuma,  Carlsbad,  and  Truckee-Carson 
projects,  and  is  producing  most  excellent  results.  Most  of 
our  labors,  therefore,  have  been  confined  to  studying  condi- 
tions on  the  projects  on  which  construction  work  is  being 
carried  or  is  contemplated.  While  experience  will  probably 
suggest  improvements  in  matters  of  detail,  and  it  may  be 
found  that  certain  instructions  will  be  difficult  of  execution, 
and  certain  blanks  and  forms  may  require  modification,  in 
the  main  the  general  principles  outlined  are  thought  to  be 
correct,  and  to  be  what  is  needed  to  collect  the  desired  data. 

In  a  service  carrying  on  so  many  different  classes  of 
work  in  so  large  a  territory,  it  is  difficult  to  formulate  any 
set  of  rules  and  regulations,  or  to  design  blanks  and  forms 
f»r  accounting,  that  will  prove  flawless ;  and  therefore  it  is 
suggested  that  the  engineers,  accountants,  and  others   be  in- 


vited  to  make  suggestions  as  to  modifications  or  amplifica- 
tions of  blanks  and  forms,  and  also  as  to  the  principles  and 
routine  set  out  in  the  text. 

It  is  recognized  that  those  who  will  use  the  system  are 
the  proper  ones  to  make  suggestions  looking  to  improve- 
ments in  details,  and  your  committee  will  welcome  any  sug- 
gestions that  may  be  made.  Anticipating  the  receipt  of  such 
criticisms  and  suggestions,  your  committee  has  ordered  but 
a  six  months'  supply  of  the  blanks  and  forms — samples  of 
which  are  submitted — and  have  opened  a  "Revision  of 
Forms"  file,  in  which  all  such  correspondence  will  be  filed, 
together  with  the  particular  blank  or  form  in  which  changes 
are  suggested.  These  letters  will  be  considered  by  the  com- 
mittee from  time  to  time,  and  the  forms  changed  when  re- 
prints are  ordered.  Your  committee  will  be  able  to  keep 
this  work  up  to  date  by  correspondence,  if  you  desire  this 
to  be  a  permanent  committee,  which  is  suggested. 

It  is  furthermore  suggested  that  all  printing  afit'ecting 
accounting  be  discontinued  in  the  field,  and  that  requisitions 
for  such  work  should  be  sent  to  your  office,  and  be  referred 
to  the  Committee  on  Uniform  Accounting. 

After  the  new  system  has  been  inaugurated  all  blanks 
that  do  not  conform  to  the  system  as  outlined  should  be  or- 
dered to  be  sent  to  this  office. 

Respectfully  submitted. 

N.  E.  WEBSTER,  Jr.,       " 
Accounfonf. 

E.  G.  LIND, 

Field  Inspector. 


Manual  of  Field  Accounting 


OFFICE  EQUIPMENT. 

Every  project  office  should  be  provided  witli  the  usual 
office  furniture,  such  as  desks,  tables,  chairs,  typewriting  ma- 
chines, books,  and  filing  cases,  safe  or  vault  for  the  protec- 
tion of  records  from  fire,  and  ordinary  fire-fighting  appli- 
ances. An  adding  machine  should  be  in  every  project  office, 
as  its  use  has  been  found  to  save  both  time  and  money. 

The  office  should  be  kept  in  a  neat  and  orderly  manner, 
and  the  employment  of  a  man  as  janitor,  messenger,  and 
mail-carrier   has  been  found  necessary  on  many  projects. 

Office  hours  should  be  fixed  at  not  less  than  seven  nor 
more  than  eight  hours,  and  as  a  rule  should  be  from  8  a.  m. 
to  noon,  and  from  i  to  5  p.  m. 

ORGANIZATION. 

Each  project  office  should  be  composed  of  two  distinct 
sections  so  far  as  accounting  is  concerned :  ( i )  Engineering 
or  Technical  Section,  and  (2)  Chief  Clerk's  or  Accounting 
Section.  These  twp  sections  should  maintain  separate  letter 
files,  for  convenience,  and  should  in  general  organize  as  out- 
lined below : 

ENGINEERING  OR  TECHNICAL  SECTION. 

The  engineering  or  technical  section  should  consist  of 
the  engineer  in  charge,  a  stenographer,  and  a  cost  keeper. 

STENOGRAl'IIER. 

The  stenographer  should  open  all  official  mail  matter 
addressed  to  the  project  office,  stamping  each  letter  with 
date  of  receipt  and  necessary  reference  marks.     He  should 


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carefully  sort  the  mail,  giving  to  the  project  engineer  such 
technical  letters  as  he  has  reason  to  believe  that  official  will 
answer  direct,  and  referring  to  the  chief  clerk  all  correspond- 
ence pertaining  to  accounting.  He  should  have  charge  of 
the  engineer's  letter  file,  and  act  in  the  capacity  of  general 
clerk  and  secretary  to  him.  He  should  report  directly  to 
the  project  engineer.  {Sec  also  Correspondence  and  Letter 
Files.) 

COST  KEEPKR. 

The  cost  keeper  should  collect  all  cost  data  intended  for 
the  use  of  the  project  engineer  and  should  see  that  the  cost 
records  are  kept  up  to  date.  These  data  will  be  obtained 
from  the  daily  and  monthly  feature  reports  and  from  the 
chief  clerk,  through  the  bookkeeper.  He  should  confer  fre- 
quently with  both  the  project  engineer  and  chief  clerk  and 
see  that  a  list  of  bookkeping  accounts,  with  their  account 
numbers  and  instructions,  are  sent  out  to  engineers,  superin- 
tendents, and  others  who  are  expected  to  make  reports  of 
costs.  When  new  work  of  any  character  is  contemplated  he 
should  hold  a  conference  with  the  project  engineer  in  order 
to  learn  just  what  cost  data  are  to  be  kept.  At  least  once  a 
month  the  project  engineer  should  go  over  all  cost  records 
in  order  to  ascertain  if  satisfactory  information  is  being  fur- 
nished regarding  the  character  of  the  work  already  under 
construction.  The  cost  keeper  should  spend  as  much  time 
as  practicable  on  the  work,  so  that  he  may  study  existing 
conditions  and  anticipate  the  wishes  of  the  project  engineer 
regarding  the  collection  of  better  and  more  detailed  cost  in- 
formation. After  the  cost  keeper  has  become  well  acquainted 
with  his  duties,  he  should  be  able  to  detect  improper  and 
crude  methods  of  handling  material  and  to  point  out  places 
where  both  time  and  money  may  be  spent  to  better  purpose 
and  with  better  results,  and  he  should  keep  the  project  en- 


gineer  informed  in  regard  to  such  cases  so  that  abuses  may 
be  promptly  corrected  and  methods  improved.  He  should 
make  up  the  monthly  reports  of  the  project  engineer  to 
the  Chief  Engineer,  and  should  perform  all  work  necessary  to 
keep  the  cost  records  in  a  businesslike  manner  so  that  the 
project  engineer  may  always  be  in  a  position  to  change 
promptly  antiquated  methods  and  stop  unnecessary  expendi- 
tures of  every  description.  The  cost  keeper  need  not  be  an 
engineer,  but  the  assignment  of  a  young  .engineer  to  this 
work  is  desirable,  because  an  engineer  will  usually  be  better 
informed  as  to  methods  and  because  of  the  educational  ad- 
vantages of  the  work.  The  cost  keeper  should  report  directly 
to  the  project  engineer.  (Sec  also  Engineering  Construc- 
tion, Costs,  etc.) 

CHIEF  CLERK'S  OR  ACCOUNTING  SECTION. 

The  chief  clerks'  or  accounting  section  should  consist 
of  the  following  employees : 

Chief  Clerk,  Purchasing  Agent,  Transportation  Clerk,  Forward- 
ing Agent,  Storehouse  Clerk,  Property  Inspector,  Stationery  Clerk, 
Mercantile  Store  Clerk,  Steward,  Timekeepers,  Pa3--roll  Clerk,  Book- 
keeper, Special  Fiscal  Agent,  Stenographer. 

CHIEF  CLERK. 

—I 

The  chief  clerk  should  be  responsible  for  all  the  ac- 
counting of  the  project,  including  his  own  office  force  as 
outlined  above.  He  should  also  be  in  charge  of  the  office 
building,  headquarters,  and  visitors'  sleeping  quarters,  head- 
quarters mess  and  grounds,  and  such  other  matters  as  per- 
tain to  accounting  and  as  the  project  engineer  may  direct 
him  to  administer.  All  mail  pertaining  to  the  business  of 
the  accounting  section  should  be  referred  to  him,  and  should 
be  distributed  to  the  clerks  whose  business  it  is  to  properly 
consider  and  handle  it.     The  chief  clerk  should  settle  all 


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questions  affecting  accounting  matters  referred  to  him  and 
should  report  direct  to  the  project  engineer. 

PURCHASING  AGENT. 

The  purchasing  agent  should  make  all  purchases,  ant 
employees  should  place  no  orders  that  have  not  gone  through 
his  hands.  He  should  (a)  receive  requests  for  purchases, 
(b)  send  out  advertisements  for  bids,  (c)  award  bids  in  the 
name  of  the  project  engineer,  (d)  place  orders  with  mer- 
chants, and  (e)  make  up  all  purchase  vouchers  for  payment 
for  goods  received.     (See  also  Purchases.) 

TRANSPORTATION  CLERK. 

The  transportation  clerk  should  handle  all  matters  con- 
cerning bills  of  lading  for  freight,  express,  and  wagon  haul- 
ing. He  should  keep  a  complete  record  of  all  bills  of  lading 
and  transportation  requests,  and  should  work  in  conjunction 
with  the  purchasing  agent.  Generally,  it  will  be  found  best 
for  him  to  report  directly  to  the  purchasing  agent.  (See  also 
Transportation.) 

FORWARDING  AGENT. 

On  some  projects  the  employment  of  a  forwarding  agent 
may  be  desirable.  Such  a  man  would  generally  be  necessary 
on  projects  located  several  miles  from  the  nearest  railroad 
station.  His  duties  would  consist  largely  in  superintending 
the  receipt  and  forwarding  of  freight  and  express,  in  aiding 
the  purchasing  agent  to  obtain  bids  and  place  orders,  in 
loading  wagons,  and  generally  in  representing  the  purchas- 
ing agent.  The  forwarding  agent  should  report  to  the  trans- 
portation clerk. 

STOREHOUSE  CLERK. 

The  storehouse  clerk  should  make  requests  for  pur- 
chases on  the  purchasing  agent,  receive  and  receipt  for  all 


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material,  supplies,  and  equipment  intended  for  the  use  of  the 
project,  issue  material  and  supplies  on  requisitions,  and  keep 
a  complete  record  of  all  storehouse  transactions.  (Sec  also 
Storehouses.) 

PROPERTY  INSPECTOR. 

The  property  inspector  should  keep  a  complete  record 
A  the  quantity,  condition,  and  location  of  all  equipment  on 
the  project.  He  should  make  frequent  inspection  trips  over 
the  various  features  of  the  project,  to  look  into  the  condition 
and  care  of  equipment,  and  to  superintend  the  branding  of 
animals  and  other  Government  property.  He  should  be  ac- 
countable for  all  the  property  on  the  project.  (See  also 
Equipment.) 

STATIONERY  CLERK. 

The  stationery  clerk  should  make  requisitions,  through 
the  purchasing  agent,  on  the  office  of  the  Chief  Engineer  for 
all  stationery.  He  should  receive  and  issue  on  requisition 
all  stationery  for  the  project  and  should  keep  a  complete 
record  of  the  stock  on  hand,  amounts  issued,  etc.  He  should 
be  held  responsible  for  any  shortage  in  stock  of  stationery. 
{See  also  Stationery.) 

MERCANTILE  STORE  CLERK. 

This  clerk  should  receive,  after  requisition  on  the  store- 
house clerk,  such  merchandise  as  is  issued  for  sale.  He 
should  keep  a  complete  account  of  all  receipts  and  sales,  and 
be  accountable  for  the  businesslike  management  of  the  mer- 
cantile store.     (See  also  Alercantile  Stores.) 

STEWARD. 

(See  Mess  Houses.) 


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TIMEKEEPERS. 

These  employees  should  take  the  time  records  of  all  per- 
sons employed,  attend  to  the  signing  of  pay  rolls,  give  out 
time  checks,  etc.  They  should  not  be  allowed  in  any  case  to 
distribute  the  fiscal  agent's  checks  to  employees.  (See  also 
Timekeeping.) 

PAY  ROLL  CLERK. 

This  clerk  should  receive  all  time  books  and  time  checks, 
make  up  all  pay  rolls,  and  in  order  to  avoid  duplication, 
check  the  charges  for  meals  on  travel  and  field  expense  ac- 
counts, and  for  services  on  pay  rolls.  He  should  prepare  all 
communications  to  timekeepers  in  regard  to  their  work,  and 
should  have  charge  of  any  open  rolls.  He  should  be  an  in- 
termediary between  the  employee  who  is  to  be  paid  and  the 
special  fiscal  agent.  He  should  also  make  up  all  contracts 
for  personal  employments  and  team  and  wagon  hire,  etc.,  and 
make  out  vouchers  for  such  accounts.     (See  also  Pay  Rolls.) 

BOOKKEEPER. 

The  bookkeeper  should  be  in  complete  charge  of  all 
books  kept  on  the  project — voucher  register,  cost  and  gen-, 
eral  ledgers,  etc.,  and  should  be  responsible  for  the  receipt, 
safekeeping  and  issue  of  stores  coupons,  meal  tickets,  and 
rent  agreements.  He  should  frequently  consult  the  cost 
keeper  in  order  to  see  that  all  necessary  data  are  being  sent 
in  from  the  field.  He  should  prepare  certain  monthly  reports 
for  the  project  engmeer  and  others,  (See  also  Account  Num- 
ber System.) 

SPECIAL  FISCAL  AGENT. 

The  special  fiscal  agent  should  pay  all  accounts  presented 
to  him  for  payment  after  auditing  them  as  to  correctness  of 
form,  etc.     While  for  convenience  he  may  occupy  space  in 


13 

the  chief  clerk's  room,  he  should  report  directly  to  the  project 
engineer.  He  should  pay  all  accounts  promptly,  as  prompt 
payment  means,  as  a  rule,  lower  prices,  and  he  should  aid 
the  purchasing  agent  in  obtaining  cash  discounts  by  dispos- 
ing of  routine  business  in  a  prompt  and  businesslike  manner. 
The  special  fiscal  agent  should  also  collect  and  receipt  for 
all  money  that  it  is  his  duty  to  handle  and  see  that  it  is 
promptly  forwarded  to  the  office  of  the  chief  engineer.  He 
should  be  provided  with  a  safe  or  vault  for  the  safe  keeping 
of  his  check  books  and  other  valuable  books  and  records, 
and  he  alone  should  have  access  to  it  or  to  that  portion  as- 
signed him.  He  should  have  absolutely  nothing  to  do  with 
the  making  of  purchases  or  the  preparation  of  vouchers,  and 
he  should  be  surrounded  with  every  possible  check  that 
would  tend  to  safeguard  the  Government's  interests  as  well 
as  his  own.  The  special  fiscal  agent's  duties  are  so  varied 
that  no  attempt  is  here  made  to  outline  them  completely. 
His  work  is  a  specialty,  and  laws  are  constantly  being  enacted 
and  decisions  made  which  tend  to  change  the  details  of  the 
conduct  of  his  business.  The  special  fiscal  agent  may  be  fre- 
quently importuned  by  merchants  and  others  to  act  as  their 
collector,  or  to  protect  them  against  loss  in  the  transaction  of 
business  with  Government  employees.  Under  no  circum- 
stances should  such  an  arrangement  be  permitted. 

Official  mail  intended  for  the  special  fiscal  agent  should 
be  given  directly  to  him,  and  need  not  go  through  the  hands 
of  the  project  engineer  or  of  the  chief  clerk. 

As  the  fiscal  agent  may  on  short  notice  be  moved  from 
point  to  point  in  the  field,  it  may  be  convenient  for  him  to 
use  a  press  copy  letter  book  for  keeping  copies  of  his  letters. 
This  book,  together  with  such  letters  as  he  may  receive, 
should  remain  in  his  own  custody  while  he  continues  to  serve 
in  this  capacity,  and  thereafter  be  filed  as  directed,  so  that 
they  may  become  a  part  of  the  project  office  records. 


14 


STENOGRAPHER. 


This  clerk  should  attend  to  all  correspondence  for  the 
chief  clerk,  and  such  letters  as  are  not  disposed  of  by  other 
clerks  in  this  section.  He  should  have  charge  of  the  letter 
files  and  do  general  clerical  work.  (Sec  also  Correspondence 
and  Letter  Files.) 

GENERAL  NOTES  ON  CHIEF  CLERk's  OR  ACCOUNTING  SECTION. 

All  the  employees  mentioned  under  chief  clerk's  or  ac- 
counting section  should  report  to  the  chief  clerk.  It  is  not 
supposed  that  all  of  these  clerks  would  be  employed  on  every 
project.  As  a  rule,  one  clerk  may  be  given  more  than  one  of 
the  duties  specified.  On  one  of  the  largest  projects  in  the 
Service,  but  seven  clerks  are  required  to  handle  all  the  ac- 
counting for  the  project.  These  duties  and  designations  are 
specified  in  order  to  suggest  some  kind  of  an  ofiice  organiza- 
tion, for  without  such  organization  it  is  hardly  to  be  ex- 
pected that  the  ordinary  routine  business  of  an  office  can  be 
carried  on  expeditiously  or  that  the  best  results  can  be  ob- 
tained. The  chief  clerk  and  his  subordinates  should  exert 
every  effort  to  save  the  project  engineer  and  his  technical 
subordinates  from  the  performance  of  any  clerical  work.  The 
accountant's  duties  are  quite  as  much  of  a  specialty  as  are 
the  duties  of  the  engineer,  but  if  the  engineer  is  compelled 
to  do  this  class  of  work  he  must  neglect  other,  and,  for  him, 
more  important  duties.  If  the  engineer  is  unhampered  by 
office  and  clerical  work  he  will  be  able  to  be  in  and  about 
the  works  frequently  and  perhaps  save  on  one  trip  as  much 
as  the  salary  of  a  clerk  for  an  entire  year.  The  clerical 
force  should  bear  these  matters  in  mind. 

The  chief  clerk  should  make  every  effort  to  see  that 
work  is  not  duplicated.  Care  should  be  taken  to  see  that  a 
complete  check  is  kept  on  all  material  and  supplies  received 
and  issued.    It  is  not  only  a  duty  owing  to  the  employee,  but 


15 

to  the  Service  as  well.  It  is  unfair  to  lay  responsibilities  on 
an  employe  who  has  to  work  by  slipshod  or  unbusinesslike 
methods,  and  to  place  him  in  a  position  where  he  may  be 
unable  to  prove  his  innocence  of  wrongdoing  should  his  of- 
ficial actions  be  subjected  to  close  scrutiny. 

The  clerks  should  be  shifted  from  one  position  to  an- 
other from  time  to  time,  and  generally  this  should  be  done 
without  notice.  A  plan  of  this  kind  not  only  makes  each  man 
in  the  office  more  useful  to  the  project,  but  to  the  Service 
in  general,  and  may  enable  clerks  to  offer  valuable  sugges- 
tions as  to  the  methods  employed  or  often  to  detect  irregular 
practices  which  should  be  abolished.  Such  a  plan  is  particu- 
larly desirable  in  the  case  of  timekeepers. 

Aluch  time  and  labor  may  be  saved  by  using  the  project 
engineer's  rubber  stamp  facsimile  signature  on  routine  and 
unimportant  papers,  the  chief  clerk  initialing  under  such  sig- 
nature. 

All  clerks  should  be  instructed  in  the  use  of  the  type- 
writing machine,  so  that  they  may  attend  to  routine  corre- 
spondence connected  with  their  desks,  instead  of  giving  all 
this  work  to  the  stenographer.  Such  a  practice  generally 
results  in  the  saving  of  much  time. 

As  a  general  rule,  time  should  be  designated  when  let- 
ters should  be  given  the  project  engineer  and  chief  clerk  for 
reading  and  signing.  This  may  prevent  frequent  interrup- 
tions and  insure  a  more  careful  reading  of  letters.  All  letters 
and  documents  should  receive  prompt  consideration.  Laxity 
in  such  matters  tends  to  prejudice  the  public  mind  against 
the  Service,  and  frequently  results  in  serious  difficulty.  At 
times  letters  and  papers  of  great  importance,  that  are  not 
considered  routine  in  character,  may  be  referred  to  the  chief 
clerk  for  consideration,  and  he  may  not  wish  to  assume  full 
responsibility  for  the  reply.  In  such  cases  an  answer  should 
be  written  and  taken  to  the  project  engineer  for  signature. 


16 

The  engineer  may  not  sign  it,  but  if  the  letter  is  prepared, 
time  will  be  saved,  and  the  engineer  will  be  better  able  to 
criticise  the  letter. 

If  the  chief  clerk  is  to  be  held  accountable  for  results 
he  should  largely  have  a  free  hand  and  be  expected  to  recom- 
mend the  hiring,  promotion,  or  dismissal  of  the  employees 
whom  he  directs. 

PURCHASES. 

GENERAI,    DIRECTIONS. 

All  purchases  should  be  made  by  the  purchasing  agent,' 
or  be  entered  on  his  records.  The  purchasing  agent  should 
be  provided  with  a  desk  telephone,  when  practicable,  in  order 
that  he  may  obtain  quotations  quickly  and  place  emergency 
orders'.  All  quotations  received  and  orders  placed  by  tele- 
phone should  be  confirmed  in  the  regular  manner. 

The  purchasing  agent  should  make  every  endeavor  to 
obtain  goods  at  the  lowest  price,  always  considering  quality. 
If  there  is  no  good  market  in  the  immediate  vicinity  of  the 
project,  he  may  buy  in  other  and  more  remote  markets, 
quick  delivery,  fair  prices,  and  good  quality  being  also  taken 
into  consideration.  An  impression  prevails  on  some  of  the 
projects  that  because  farmers  and  others  in  the  vicinity  have 
ultimately  to  pay  for  the  project  the  Service  must  deal  with 
them  or  with  local  merchants,  irrespective  of  prices,  quality, 
and  time  of  delivery.  This  is  a  fallacy.  The  Reclamation 
Service  is,  of  course,  glad  to  do  business  with  persons  par- 
ticularly interested  in  the  project,  but  it  must  do  business 
with  persons  who  can  give  the  best  prices  and  service. 

Frequently  it  has  been  found  to  be  of  great  value  to 
the  project  to  allow  the  purchasing  agent  to  take  from  time 
to  time  trips  to  large  distributing  points  in  order  to  induce 
merchants  and  others  to  bid  on  advertisements.  The  cost  of 
such  a  trip  may  frequently  be  saved  on  one  order. 


17 

Every  project  purchasing  agent  should  keep  a  price 
book  or  record,  and  endeavor  to  keep  it  up  to  date.  There 
are  a  number  of  such  books  on  the  market,  and  as  good  a 
one  as  can  be  bought  is  the  Unimatic  Price  Book,  but  an 
ordinary  blotter  may  be  used.  These  books  are  of  great 
value  to  the  purchasing  agent  in  awarding  bids  or  making 
estimates  of  the  cost  of  a  certain  article  or  group  of  articles. 

All  boxes  and  packages  should  be  marked  with  the  name 
of  the  project  engineer  and  all  orders  should  be  placed  in  his 
name. 

Too  nuich  importance  can  not  be  attached  to  shipping 
and  marking  directions  on  Purchase  Orders.  If  an  order  is 
made  for  a  particular  project  feature,  care  should  be  taken 
that  the  order  shows  what  that  feature  is,  thus : 

"Mark  packages ,  Engineer,  U.  S.  Recla- 
mation Service,  Lnjane.  Colo.  For  office,  corral,  or  tunnel, 
etc." 

If  this  is  done  large  pieces  of  machinery  or  other  ma- 
terial can  be  hauled  directly  to  the  feature  for  which  it  is 
intended,  the  engineer,  superintendent,  or  foreman  acting  as 
the  agent  for  the  storehouse  clerk,  who  will  make  one  issue 
and  receipt  to  cover  the  transaction.  This  avoids  the  neces- 
sity of  taking  the  package  or  packages  to  the  storehouse  to 
be  identified  and  then  hauling  them  again  to  the  place  at 
which  they  are  to  be  used. 

All  invoices  should  be  sent  in  in  duplicate  by  merchants, 
who  should  be  urged  to  use  the  project  purchase  order  num- 
ber in  communications,  on  invoices,  and  in  marking  boxes. 
This  plan  will  greatly  aid  the  storehouse  clerk  in  locating 
a  shipment,  and  tracing  it  to  an  invoice.  When  projects  are 
remote  from  railroad  points  and  a  forwarding  agent  is  em- 
ployed, it  will  not  be  necessary  to  open  boxes  in  order  to 
check  the  deliveries  against  purchase  orders  and  the  ptir- 


18 

chasing  agent  will  be  able  to  locate  the  shipment  in  his  copy 
of  the  purchase  order. 

No  invoice  should,  without  excellent  reason,  be  held  up 
in  a  project  office  for  over  thirty  days  from  its  receipt.  In 
the  majority  of  instances  but  a  few  days  should  elapse  from 
the  time  an  invoice  is  receipted  by  the  store  house  clerk  until 
its  final  payment. 

All  vouchers  for  purchases  and  contract  claims  and  re- 
leases should  be  made  out  under  the  direction  of  the  pur- 
chasing agent.  The  responsibility  of  the  purchasing  agent 
should  end  when  the  purchase  order  and  shipping  instruc- 
tions have  been  issued,  and  when  certified  vouchers  have 
been  prepared  under  his  direction. 

When  practicable,  all  vouchers  should  be  made  up  at 
the  project  office  instead  of  in  the  field.  Engineers  who  are 
located  at  places  remote  from  the  office  should  O.  K.  any 
bills  they  may  have  contracted  and  send  them  in  to  the 
project  office,  so  that  the  vouchers  may  be  made  out.  This 
would  save  the  engineers  clerical  work,  and  insure  the 
voucher  being  prepared  in  a  neat  and  business-like  manner. 

The  purchasing  agent  should  endeavor  to  keep  down 
the  number  of  vouchers.  Frequently  one  voucher  can  cover 
a  number  of  invoices,  and  when  this  is  possible  it  should  be 
done. 

Care  should  be  taken  that  all  vouchers  are  prepared 
neatly.  There  is  very  little  excuse  for  scratched  or  slovenly 
looking  vouchers  being  made  up  at  a  project  office,  particu- 
larly in  one  where  a  disbursing  officer  is  located. 

The  purchasing  agent  should  also  keep  a  purchase  order 
book.  Any  form  of  blotter  will  do  for  this  purpose.  In  this 
book  should  be  listed  all  purchase  orders  consecutively  by 
number,  giving  amount  of  order,  name  of  merchant,  ship- 
ping directions,  for  whom  ordered  (features,  etc.),  date  of 
receipt  of  goods,  and  any  other  notes  necessary.     All  pur- 


19 

chase  orders  placed  for  the  project  should  have  one  of  these 
order  numbers,  which  the  purchasing  agent  should  supply. 

TRACING  A   PURCHASE  AND   REOUISITION. 

All  engineers,  superintendents,  foremen,  chiefs  of 
parties,  or  others  whose  requisitions  for  supplies  or  material 
on  the  storehouse  are  to  be  honored,  should  be  provided 
with  numbered  "Requisition  Books."  These  "Requisition 
Books"  are  made  up  in  triplicate  and  every  employee  requir- 
ing equipment,  materials,  supplies,  or  miscellaneous  services 
from  the  storehouse  or  other  issuing  departments  should  be 
instructed  to  make  out  all  three  copies — using  carbon  paper 
— and  place  thereon  the  particular  account  number  to  which 
the  articles  or  services  are  to  be  charged.  All  three  copies 
should  then  be  sent  to  the  storehouse  clerk,  who  should  re- 
fuse to  honor  any  requisition  not  bearing  an  account  number. 
As  a  matter  of  fact  the  account  number  given  may  be  a 
wrong  one  (which  may  happen  during  the  first  few  days 
after  the  system  is  installed),  for  the  storehouse  clerk  can  not 
be  supposed  to  know  all  the  account  numbers  in  use  on  the 
project,  as  he  is  interested  merely  in  those  assigned  to  the 
storehouse,  but  he  must  insist  upon  a  number  being  given. 
The  project  office,  to  which  a  copy  of  the  requisition  will 
finally  go,  will  readily  detect  any  error  in  the  number  given. 

If  the  storehouse  clerk  has  the  stock  on  hand,  he  should 
fill  the  "Requisition,"  give  himself  credit  on  his  "Bin  Cards," 
insert  prices  on  all  three  copies,  and  have  the  person  receiv- 
ing the  goods  receipt  for  them.  He  should  then  return  the 
yellow  or  triplicate  copy  to  the  person  who  receives  the 
goods,  retain  the  pink,  or  duplicate,  copy  for  his  own  protec- 
tion, and  at  the  end  of  the  day's  business  forward  the  white 
or  original  copy  to  the  project  office.  This  white  copy  will 
be  used  by  the  bookkeeper  in  distributing  costs.  Should 
the  storehouse  clerk  fail  to  have  the  material  on  hand,  he 


20 

should  note  on  the  face  of  the  requisition,  "not  in  stock," 
or  "will  order,"  and  return  it,  sending  a  "Request  for  Pur- 
chase" on  the  purchasing  agent.  This  should  be  made  out 
in  duplicate,  the  white  or  original  request  should  be  sent  to 
the  purchasing  agent,  and  the  yellow  or  duplicate  copy 
should  be  kept  for  his  own  files  as  a  "follow  up." 

Immediately  on  the  receipt  at  the  project  ofiice  of  the 
"Request  for  %irchase,"  "Advertisements,"  which  should 
be  numbered  consecutively,  in  order  to  be  readily  referred 
to,  should  be  sent  out  in  duplicate  to  the  firms  who  are  ex- 
pected to  compete  for  the  business,  using  the  "Request  for 
Proposals"  Form,  and  on  their  return  the  order  should  be 
given  to  the  lowest  bidder.  A  copy  should  be  sent  to  post- 
masters or  others  who  may  be  asked  to  give  publicity  to  an 
"Advertisement,"  using  the  "Request  to  Post  Advertisement" 
Form. 

When  "Advertisements"  are  sent  to  dealers  located  in 
the  same  town  as  the  project  ofiice,  two  of  the  forms  men- 
tioned above  need  not,  of  course,  be  used.  The  purchase 
order  number  should  be  inserted  when  the  order  is  given, 
and  complete  copies  of  the  order  should  be  kept  in  the  pur- 
chasing office  and  the  storehouse  clerk  and  forwarding  agent 
should  also  receive  copies. 

A  copy  of  the  "Advertisement"  should  be  kept  in  the 
purchasing  office,  and  to  this  copy  should  be  attached  the 
"Purchasing  Agent's  Card,"  showing  number  of  advertise- 
ment, names  of  the  firms  to  whom  sent,  where  posted,  and 
date  on  which  bids  are  to  be  opened,  etc.  These  should  then 
be  filed  alphabetically  in  a  cabinet  marked  "Request  for 
Bids." 

As  a  general  rule  the  award  should  be  made  to  the  low- 
est bidder  on  the  whole  amount.  There  would,  of  course, 
be  exceptions  to  this  rule,  as  in  the  case  of  a  firm  that  bids 
on  an  inferior  article,  or  of  one  that  has  not  all  the  material  in 


21 

stock,  etc.,  but  generally  it  is  advantageous  to  consider  a 
bid  as  a  whole,  as  in  this  way  wholesale  prices  are  generally 
obtained  on  large  orders,  which  would  not  be  the  case  were 
the  bids  considered  item  by  item.  When  the  bid  is  awarded, 
the  total  quotations  of  the  various  firms  that  submitted  bids 
should  be  added  to  the  card  above  mentioned,  together  with 
the  name  of  the  successful  bidder,  order  number,  etc.,  so 
that  a  glance  at  the  card  will  give  all  the  essential  informa- 
tion. Unsuccessful  bidders  should  be  notified  as  to  the  dis- 
position of  the  order  on  "Notice  to  Unsuccessful  Bidders" 
Form,  while  the  awarding  of  the  order  should  be  made 
through  the  "Purchase  Order"  Form. 

After  the  order  has  been  given,  and  the  unsuccessful 
bidders  notified,  the  "Advertisement"  should  be  taken  from 
the  "Request  for  Bids"  cabinet,  and  indexed  alphabetically 
and  filed  numerically,  so  that  the  purchasing  agent  can  at 
any  time  find  an  "Advertisement"  placed  months  before, 
or  find^  every  "Advertisement"  ever  issued  for  a  given  ar- 
ticle. Such  a  file  of  advertisements  should  prove  of  great 
value  as  a  time-saver  in  preparing  vouchers,  and  in  ascer- 
taining previous  prices,  and  should  aid  the  purchasing  agent 
in  various  other  ways. 

These  advertisements  should  be  used  largely  in  keeping 
a  record  of  when  the  goods  are  received,  etc.,  so  that  they 
really  become  an  important  part  of  the  general  office  records, 
and  the  simple  method  of  filing  above  outlined  is  so  com- 
plete that  there  should  be  little  or  no  chance  of  an  advertise- 
ment being  mislaid  or  a  part  of  a  record  lost. 

The  copy  of  the  "Request  for  Purchase"  and  "Purchase 
Order"  should  finally  be  filed  together.  The  "Purchase  Or- 
der" number  should  be  used  as  an  index,  but  prior  to  award- 
ing the  bid  the  "Request  for  Purchase"  should  l)e  placed 
with  the  "Purchasing  Agent's  Card." 

When  an  order  is  placed,  one  of  the  copies  of  the  ac- 


22 

cepted  "Advertisement"  should  be  sent  to  the  successful 
bidder,  and  he  should  be  instructed  to  return  it  with  his  in- 
voice for  the  material,  the  other  copy  should  be  retained  for 
office  reference. 

Each  project  office  should  insist  that  invoices  be  ren- 
dered in  duplicate,  the  original  copy  being  for  the  office  of 
the  project  engineer  and  the  duplicate  going  to  the  store- 
house clerk.  The  storehouse  clerk  should  send  to  the  project 
office  each  day  a  list,  showing  amounts,  etc.,  of  such  invoices 
as  he  may  have  received.  If  the  project  office  has  on  hand 
any  original  invoices,  in  its  invoice  file,  covered  by  the  store- 
house clerk's  list,  it  should  send  them  to  him,  where  they 
will  be  stamped  with  the  storehouse  clerk's  "Shipment  Re- 
ceipt Stamp,"  showing  condition  of  shipment,  shortage,  etc. 
On  receipt  of  the  original  invoice  at  the  project  office,  it 
should  be  entered  by  the  bookkeeper  in  the  "Personal 
Ledger,"  where  a  separate  account  should  be  kept  with  each 
firm,  and  then  it  should  be  passed  to  the  purchasing  agent 
to  be  vouchered.  The  storehouse  clerk  should  keep  his  dupli- 
cate invoice,  after  stamping  it  properly,  for  his  own  files. 

The  purchasing  agent  should,  under  no  circumstances, 
make  out  a  voucher  for  an  account  not  bearing  the  store- 
house clerk's  stamp.  He  should  also  note  carefully  any  re- 
marks on  invoices  as  to  conditions  of  shipment,  shortage, 
etc.,  in  order  to  have  goods  replaced  or  deductions  made. 

The  invoice  should  then  be  filed  and  the  vouchers  sent 
out  for  signature.  On  the  return  of  the  vouchers,  the  prices 
and  extensions  should  be  checked  by  the  purchasing  agent, 
who,  in  order  to  show  how  the  account  was  vouchered,  may 
stamp  the  invoice  in  the  following  manner,  for  the  informa- 
tion of  the  bookkeeper,  who  keeps  the  "Personal  Ledger :" 


23 


Original 

Ent.  Ledger  Acct 

Received  as  billed  .  . .  . 

Vouchered,  $ 

Charged  as  vouchered 
Entered  as  vouchered 


The  use  of  this  stamp  is  not  obhgatory,  but  on  large 
projects,  where  many  accounts  are  handled,  its  use  will  be 
found  of  great  advantage.  It  can  be  had  on  requisition  to 
the  office  of  the  Chief  Engineer. 

The  voucher  should  then  be  passed  to  the  bookkeeper, 
who  should  make  classification  of  the  articles  purchased  as 
per  charge  sheets,  note  the  same  on  the  back  of  the  office 
copy  of  the  voucher  by  using  the  "Charge  Sheet  Distribution 
Stamp,"  attach  charge  sheet,  number  it  in  consecutive  order, 
and  list  it  in  the  voucher  register,  charging  the  account  to 
the  special  fiscal  agent,  to  whom  it  should  be  sent  for  pay- 
ment. 

A  copy  of  the  accepted  proposal,  with  the  abstract  on 
the  back  property  filled  out,  should  be  made  for  the  file  and 
reference  of  the  special  fiscal  agent,  while  the  copy  re- 
turned by  the  payee  should  be  transmitted  to  the  office  of 
the  Chief  Engineer  with  the  vouchers,  as  well  as  one  of  the 
copies  of  the  proposals  of  the  unsuccessful  bidders.  In  this 
way  a  complete  record  of  each  bid  is  retained  for  office 
reference. 

After  the  voucher  has  been  ])aid  the  office  copy  should 
be  returned  by  the  special  fiscal  agent  to  the  bookkeeper. 
This  copy  will  show  date  of  payment,  check  number,  etc. 
The  amount  as  paid  should  be  entered  in  the  personal  ledger 
and  the  voucher  filed.  This  system  ought  to  fix  responsibility 
at  any  time  for  delays  in  ordering,  receiving,  or  paying  for 
goods,  and  any  shortage  ought  to  be  readily  detected. 


24 

FORMS  USED  BY  THK  PURCHASING  AGENT  AND  OTHERS. 

Requisition  book  [Fonii  7-590). — Instructions  as  follows: 

1.  Number  all  requisition  blanks  with  a  numbering  machine, 
in  triplicate  and  consecutively,  and  issue  to  all  engineers,  superin- 
tendents, foremen,  and  others  who  have  authority-  to  make  requisi- 
tions  on   storehouses   or  other   issuing  departments. 

2.  Make  all  requisitions  in  triplicate,  using  carbon  paper  for 
yellow  and  pink  copies.  The  person  making  requisition  should 
place  the  account  numbers  to  which  supplies  or  materials  are  to  be 
applied  opposite  the  items  relating  to  such  supplies  or  materials ; 
if  the  entire  requisition  requires  the  use  of  but  one  account  number, 
bracket  the  items  and  insert  number  but  once.  Fill  in  the  blank 
spaces  for  date,  project,  project  feature,  quantity  wanted,  articles,  and 
shipping  directions,  and  affix  signature,  and  title. 

3.  Send  all  three  copies  to  the  storehou.se.  The  storehouse  will 
fill  in  the  spaces  provided  for  quantity  furnished,  unit  price,  and 
total,  and  will  foot  requisition.  The  person  recei^-ing  the  goods  will 
sign  in  the   space  for  that  purpose,   giving  title. 

4.  The  storehouse  clerk  will  return  the  yellow  (or  triplicate) 
copy  to  the  person  bringing  the  requisition ;  he  will  retain  the  dupli- 
cate (or  pink)  copy  for  his  files;  and,  at  the  end  of  each  day's  busi- 
ness, will  forward  the  original   (or  white)   copy  to  the  project  office. 

5.  The  office  will  charge  the  requisitions  in  the  .storehouse 
classification  book  according  to  account  numbers,  so  that  a  daily  dis- 
tribution may  be  made. 

6.  The  property  inspector  will  also  use  the  requisition  to 
credit  the  storeliouse  and  debit  the  particular  feature  of  the  project 
receiving  equipment. 

7.  When  storehouse  clerks,  or  clerks  in  charg'e  of  other  is- 
suing departments,  receive  requisitions  that  cannot  be  filled  because 
of  shortage  in  stock  or  other  sufficient  reason,  they  will  mark  on 
the  requisition,  "Not  in  stock;  will  order,"  and  return  the  requisition 
to  person  making  it.  Should  some  of  the  articles  be  on  hand,  such 
part  of  the  requisition  ma}'  be  filled ,  in  this  case  the  other  items 
should  be  canceled  and  notation  made  as  above.  New  requisitions 
should  then  be  made  for  the  articles  not  furnished,  if  still  required, 
th'e  storehouse  clerk  filling  out  the  requisition  and  signing  it  for  the 
engineer,  foreman,  or  superintendent  who  originally  made  it.  Cross 
reference  bj^  numbers   should  be  made  to  the  first  requisition.     The 


25 

unfilled  requisition  should  he  filed  on  a  spindle  until  the  transaction 
is  completed. 

Request  for  piircliase  {Form  7-584). — Instructions  as 
follows : 

Numher  hianks  consecutively  and  in  duplicate,  and  issue  to 
storehouse  clerks  and  other  clerks  of  issuing  departments,  after  fill- 
ing in  the  blank  spaces  provided  for  project  name  with  a  rubber 
stamp.  When  clerks  of  such  departments  receive  requisitions  which 
they  are  unable  to  fill  on  account  of  depleted  stock,  or  for  other  good 
cause,  they  will  write  out  a  duplicate  request  for  purchase  on  the 
purchasing  agent,  using  carbon  copy  for  impression  ;  they  will  send 
the  white  (or  -original;  copy  to  that  officer,  and  keep  the  yellow  or 
duplicate  copy,  on  p  spindle  until  copy  of  purchase  order  is  received 
from  tire  purchasing  agent  covering  the  particular  request  for  pur- 
chase. Until  the  copy  of  the  purchase  order  is  received  by  the 
storehouse  clerk,  he  will  use  his  file  of  requests  for  purchase  as  mem- 
oranda with  which  to  follow  up  such  requests.  When  purchase  order 
is  placed,  both  the  purchasing  agent  and  the  storehouse  clerk  will 
file  their  copies  of  their  requests  for  purchase,  with  the  copies  of 
purchase  order. 

Request  for  proposals  (Form  7-581). — Self-explanatory. 

Advertisement  (Form  9-524). — Instructions  on  back. 

Advcrtisemriit,  siipplemcnt  (Form  9-525). — Self-explana- 
tory. 

F^meri^eney  qicotation  (Form  9-526). — Self-explanatory. 

Subsistence  supplies  quotation  (Form  9-525(7). — Self-ex- 
planatory. 

Request  to  post  advertisement  (Form  7-583). — Self-explan- 
atory. 

Purchasiiiii-  agent's  record  card  (Form  7-606. — Instructions 
on  back. 

Purchase  order  (Form  7-589). — Instructions  as  follows: 

Make  nut  the  Purchase  Order  in  triplicate — one  copy  for  the 
merchant,  one  for  the  storehouse  clerk,  and  one  for  the  project 
office.     If  a  forwarding  agent  is  employed  on  the  project,  a  fourth 


26 

copy  should  be  sent  to  him.  All  parties  concerned  in  the  transaction 
are  thus  enabled  to  keep  a  lookout  for  the  shipment,  and  hurry  it 
through  to  destination.  The  several  copies  of  the  order  are  then 
placed  on  an  unfilled  order  spindle,  and  when  the  goods  have  been 
received  the  request  for  purchase,  copy  of  purchase  order,  proposal 
or  quotation  and  invoice  are  filed  together. 

Notice  to  unsuccessful  bidders  {Form  7-582). — Self-ex- 
planatory. 

Letter  transmitting  vouchers  {Form  g-02yr). — Self-explan- 
atory. 

Contract  claim  {Form  7-545). — Self-explanatory. 

Release  on  contract  {Form  7-292). — Self-explanatory. 

Miscellaneous  claim  {Form  9-546). — Self-explanatory. 

Contract  {Form  9-523). — Instructions  on  back. 

Contract  short  form  {Form  7-523.4 ). — Instructions  on  back. 

TRANSPORTATION. 

The  work  of  the  transportation  clerk  should  include  the 
handling  of  all  matters  pertaining  to  bills  of  lading,  trans- 
portation requests,  and  local  transportation.  The  transpor- 
tation clerk  should  familiarize  himself  with  memoranda  on 
transportation  matters  issued  by  the  office  of  the  Chief  En- 
gineer. 

Project  engineers  and  others  who  have  to  do  with  the 
ordering  of  supplies  and  the  shipping  of  freight  should  com- 
nuuiicate  with  the  transportation  office  at  Chicago,  in  order 
that  the  lowest  rates  and  best  facilities  may  be  secured. 

A  great  saving  to  the  service  may  be  effected  by  allow- 
ing the  transportation  office  to  route  material,  as  there  may 
be  cases  of  emergency  shipments,  when  there  is  not  time  to 
communicate  with  the  transportation  office.  All  persons  who 
have  to  do  with  ordering  and  shipping  of  supplies  should  fa- 
miliarize themselves  with  the  routes  granting  the  larger  con- 
cessions to  the  Service.     The  transportation  office  should  be 


27 

asked  to  furnish  a  list  of  the  roads  granting  such  concessions 
and  any  other  information  that  may  be  desired  for  a  better 
understanding  of  transportation  matters,  but,  in  the  main,  all 
questions  of  this  nature  should  be  referred  to  the  transpor- 
tation office,  which  was  established  primarily  for  this  pur- 
pose. 

Bills  of  lading  to  cover  express  and  freight  shipments 
should  accompany  all  purchase  orders,  except  when  shipment 
is  ordered  by  mail  or  order  is  placed  f.  o.  b.  point  of  destina- 
tion, and  the  purchase  order  should  carry  with  it  explicit 
directions  as  to  the  manner  of  handling  these  papers. 

The  stub  records  of  all  bills  of  lading  accomplished  or 
issued  should  be  made  as  complete  in  every  detail  as  possible, 
and  should  contain  the  following  information:  Names  of 
consignor,  consignee,  shipping  point,  and  destination,  weight, 
car  numbers,  weigiit  of  each  car,  and  an  accurate  description 
of  the  nature  of  the  contents.  As  debit  notices  refer  to  bill 
of  lading  numbers  only,  much  correspondence  on  freight 
charges  may  be  avoided  by  keeping  an  accurate  stub  record. 
A  supply  of  bills  of  lading  records  (form  9-572)  has  been 
sent  to  all  project  offices  for  recording  all  accomplished  bills 
of  lading  that  were  not  taken  from  the  book  in  use  at  the 
project  office,  as  for  instance,  shipments  of  supplies  from 
the  office  of  the  Chief  Engineer. 

The  .bill  of  lading  now  in  use  by  the  Service  is  not  en- 
tirely satisfactory,  and  its  modification  is  contemplated  when 
the  Government  adopts  a  uniform  bill  of  lading  for  all  de- 
partments. 

As  the  stubs  of  bills  of  lading  books  are  permanent 
records  they  should  be  retained  in  the  project  offices  until 
the  office  is  abandoned,  when  they  should  be  forwarded  to 
the  office  of  the  Chief  Engineer. 

When  practicable  all  shipments  should  be  inspected  be- 
fore the  bill  of  lading  is  signed  by  the  consignee.    Any  dam- 


28 

age  to  the  shipment  should  be  noted  and  the  dehvering 
agent  should  be  required  to  acknowledge  same  over  his  sig,- 
nature  on  the  bill  of  lading,  and  on  the  copy  of  expense  bill 
to  be  referred  to  hereafter. 

For  every  accomplished  bill  of  lading  delivered  to  the 
agent  at  destination  for  the  delivery  of  a  shipment  the  project 
office  should  secure  the  duplicate  receipt  of  the  agent  on 
form  9-535,  which  should  show  all  the  information  of  the 
regular  expense  bill,  including  the  charges  as  way-billed. 

The  amount  of  such  charges  may  be  used  as  the  basis 
of  a  liability-entry  for  the  freight  and  a  charge  against  the 
articles — material,  supplies,  or  equipment — on  which  it  was 
incurred.  A  copy  of  the  expense  bill  should  then  be  sent  to 
the  office  of  the  Chief  Engineer  to  be  held  as  a  record  of  the 
liability  until  the  receipt  of  the  railroad  company's  bill  for 
the  transportation. 

When  bills  of  lading  are  used  for  shipments  to  a  per- 
son outside  the  Service,  blank  copies  of  this  expense  bill 
form  should  be  sent  the  consignee,  with  instructions  to  se- 
cure the  data  and  receipt  in  duplicate,  and  to  return  them 
to  the  consignor  for  record  and  transmittal  to  the  office  of 
the  Chief  Engineer,  and  for  project  office  reference. 

It  is  most  important  that  these  expense  bills  be  used, 
as  they  show  or  should  show  the  complete  history  of  every 
shipment.  The  receipted  expense  bill  enables  the  project 
office  to  prove  that  a  bill  of  lading  was  delivered  to  the 
railroad  company,  and  is  an  aid  in  avoiding  disputes  with 
railroad  companies  regarding  rates,  weights,  etc. 

In  the  case  of  contractors'  shipments,  one  copy  of  the 
expense  bill  should  be  kept  in  the  project  office,  and  the 
other  forwarded  to  the  transportation  office  at  Chicago. 

No  card  index  will  be  necessary  in  handling  freight  and 
express  transactions  at  the  various  project  offices,  the  stub 


29 

of  the  bill  of  lading  and  the  expense  bills  filling  all  necessary 
requirements. 

All  transportation  requests  issued  to  or  used  by  the 
project  offices  should  be  recorded  on  form  O-520. 

The  coupons  of  all  transi)ortation  requests  should  pass 
through  the  transportation  clerk  in  order  that  the  distributed 
charges  may  be  recorded  on  the  coupon  in  transportation  re- 
quest books  (form  6-520),  as  reference  will  be  made  by 
number  only  when  sending  debit  notices  to  project  offices 
from  the  office  of  the  Chief  Engineer. 

FORMS  USED  BV  TRANSrORTATlON  CI.KRKS  AND  OTHERS. 

Bill  of  lading  (form  9-562). — Instructions  on  back. 

Copy, of  expense  bill  (Form  9-535). — Instructions  on  back. 

Request  to  return  bills  of  lading  (Form  7-605). — Self-ex- 
planatory. 

Transportation  request  card  (Form  9-528). — Self-explana- 
tory. 

Bill  of  lading  card  (Form  9-572). — Self-explanatory. 

Transportation  request. — Self-explanatory. 

STOREHOUSES. 

At  the  storehouses  on  the  project  may  be  kept  such 
equipment,  material,  or  supplies  as  may  be  needed  from 
time  to  time.  All  small  articles  should  be  placed  in  bins  or 
on  shelves  or  racks,  and  large  articles  should  be  piled  so  as 
to  occupy  as  little  floor  space  as  possible.  Iron,  pipe,  cord 
wood,  lumber,  and  bulky  material  that  the  weather  will  not 
affect  may  be  placed  in  racks  or  piles  out  of  doors,  but  near 
the  storehouse  when  possible.  The  storehouse  should  be  lo- 
cated as  near  the  project  office  as  possible,  and  should  be 
large  enough  to  properly  handle  articles  to  be  issued  later. 
As-  a  rule,  supplies  should  be  kept  in  one  building  and  not 


30 

scattered  in  various  houses  over  the  project.  The  building 
should  be  equipped  with  scales,  desk,  etc.,  and  generally  it 
would  be  best  to  have  the  storehouse  clerk,  who  will  have 
charge  of  the  storehouse  occupy  a  room  in  it  as  sleeping 
quarters. 

Such  articles  as  it  would  be  impracticable  to  keep  in 
stock  (large  pieces  of  machinery,  etc.)  need  not  be  hauled 
to  the  storehouse  for  distribution,  but  in  theory,  at  least, 
everything  should  go  through  the  storehouse.  The  foreman 
for  a  particular  feature  should  receive  the  article  for  the 
storehouse  clerk,  and  should  send  in  a  requisition  for  it,  the 
storehouse  clerk  at  once  making  entries  showing  receipt 
and  issue.  In  order,  however,  that  the  storehouse  clerks' 
accounts  may  check,  care  should  always  be  taken  that  none 
of  these  transactions  appear  on  his  cards  unless  the  requisi- 
tion is  also  considered,  for  later  on,  much  trouble  may  be 
caused  in  order  to  find  the  discrepancy. 

.  The  storehouse  clerk  should  be  required  to  care  for 
such  supplies  or  equipment  as  may  be  placed  in  his  keeping. 
The  stock  should  be  frequently  checked  against  the  inventor} 
account  kept  in  the  office,  in  order  to  see  that  its  value  equals 
the  total  of  that  account,  less  any  reasonable  shrinkage  or 
leakage.  The  clerk  should  be  held  financially  responsible  for 
shortage  in  his  stock.  He  should  see  that  he  does  not  run 
out  of  articles  that  should  be  kept  in  stock,  and  that  his 
stock  is  not  allowed  to  become  depleted  by  filling  unneces- 
sarily large  requisitions.  He  should  keep  an  ordinary  blotter 
to  record  such  articles  as  will  soon  be  needed,  and  once  every 
few  days  a  "Request  for  Purchase"  should  be  made  out 
from  this  memoranda,  from  a  general  survey  of  the  stock  in 
the  storehouse,  or  from  reference  to  the  "Bin  Cards."  This 
"Request  for  Purchase"  should  be  sent  to  the  purchasing 
agent,  as  explained  under  the  heading  "Tracing  a  Purchase 
and  Requisition" 


31 

Frequently  articles  may  be  needed  from  the  storehouse 
to  meet  a  sudden  emergency.  In  such  cases  the  person  re- 
quiring the  article  or  articles  may  transmit  the  requisition 
by  telephone  (should  the  project  use  one),  and  confirming 
it  later,  or  he  may  authorize  the  storehouse  clerk  to  make  out 
a  requisition  in  the  name  of  the  engineer,  superintendent,  or 
other  person  desiring  the  articles.  The  clerk  should  state 
on  the  requisition  the  particular  emergency  to  be  met,  and 
should  initial  the  form. 

All  engineers,  superintendents,  and  others  should  be 
careful  to  anticipate  what  may  be  required  on  their  particu- 
lar features,  in  order  that  the  stock  in  the  storehouse  may 
not  run  low  and  work  ma}-  not  be  dela}"ed  on  account  of  lack 
of  material. 

The  stocking  up  of  a  storehouse  generally  saves  the 
making  up  of  a  large  number  of  vouchers  for  small  amounts 
and  insures  the  purchase  of  material  and  supplies  at  cheaper 
prices,  because  larger  quantities  are  ordered.  It  also  saves 
many  trips  to  the  nearest  market  to  obtain  small  quantities 
of  supplies,  thereby  decreasing  the  expense,  as  w^ell  as  the 
clerical  work. 

The  storehouse  clerk  should  use  the  storehouse  clerk's 
"Shipment  Receipt  Stamp"  on  all  invoices.     It  reads: 

Shipment  Received. 
Condition  Good — Except  as  noted. 
(Date.) 
Freight  charges  $ 

Storehouse  Clerk. 

The  purchasing  agent  should  not  voucher  an  invoice 
unless  it  bears  this  stamp  and  the  signature  of  the  storehouse 
clerk,  and  the  latter  should  be  careful  to  note  any  and  all 
exceptions.     Any  shortage  discovered  should  be  deducted 


32 

plus  an  amount  for  railroad,  local,  or  other  freight  charges. 

In  using"  the  "Bin  Card,"  the  storehouse  clerk  should 
exercise  care  to  see  that  all  goods  are  issued  at  the  old  in- 
voice price  before  taking  up  a  new  invoice  price  for  later 
purchases. 

On  small  projects,  where  a  storehouse  clerk  occupies 
desk  space  in  the  office  building,  and  only  goes  to  the  store- 
house to  fill  an  occasional  requisition,  it  mav  be  well  for  him 
to  keep  his  bin  cards  on  his  desk,  thus  obviating  the  neces- 
sity for  making  frequent  trips  to  the  storehouse  in  order  to 
consult  his  cards  in  order  to  determine  the  balance  of  his 
stock. 

For  the  transportation  of  passengers  on  stage  lines  the 
"Local  Bill  of  Lading"  may  be  used  when  necessary,  as  di- 
rected by  the  instructions  for  the  form.  This  form  need  not 
be  used,  however,  when  a  shipment  is  covered  by  a  filled 
requisition  emanating  from  a  particular  feature,  a  copy  of 
which  the  teamster  should  have  with  his  load. 

FORMS  USED  BY  STOREHOUSK  CLERK  AND  OTHERS. 

Bin  card  (Form  7-587). — Instructions  as  follows: 

These  cards  are  to  be  issued  to  storehouses,  mercantile  stores,, 
or  other  issuing  departments. 

Upon  the  basis  of  a  complete  inventory,  these  emplo\-ees  will 
carry  an  account  on  the  cards  with  each  article  in  stock,  by  class, 
number,  and  size  of  such  articles. 

The  blank  space  marked  ''T^nit"  is  for  the  insertion  of  the 
unit  of  measure — pounds,  gallons,   feet,  etc. 

The  spaces  marked  "Maximum,"  "Minimum,"  and  "Usual  Pur- 
chase" are  intended  as  a  guide  to  the  clerk,  that  he  may  not  keep  in^ 
stock  more  or  less  of  the  particular  article  than  is  required  or  neces- 
sary, and  to  aid  him  when  making  his  requisition  for  purchases  when' 
replenishing  his  stock. 

On  the  debit  side  the  space  left  for  date  is  for  the  date  of  the 
receipt. 

The  order   number   is   obtained   from  tbe   copy  of  the  purchase 


33 

order  received  from  the  purchasing  agent,  and  the  quantity  from 
■  either  the  invoice,  local  bill  of  lading,  or  any  transfer  of  equipment 
to  the  storehouse  from  some  other  project  feature. 

Freight,  wagon  hauling,  and  handling  are  a  part  of  the  cost  of 
all  articles  purchased.  Whenever  these  costs  can  be  ascertained  at 
the  time  of  receiving  the  articles,  such  expense  should  be  included  in 
the  invoice  price,  and  considiered  in  determining  the  unit  price  for 
issues.  For  the  miscellaneous  articles  on  which  it  is  not  practicable 
to  det^ermine  such  expense  at  the  time  of  receipt,  a  fixed  proportion 
should  be  added  to  invoice  price  to  cover  these  charges. 

On  the  credit  side  of  the  card  the  date  is  for  the  date  of  issue. 

The  requisition  number  is  taken  from  the  requisition  itself  and 
the  quantity  is  for  the  amount  issued. 

As  each  issue  is  made,  the  balance  of  the  article  on  hand  is 
noted  in  the  column  provided  for  that  purpose. 

The  cards  are  to  be  kept  in  their  respective  holders,  and  cither 
in  or  near  the  bin  containing  the  article  to  be  issued. 

There  will  almost  always  be  some  articles  for  which  it  will  be 
impracticable  to  keep  bin  cards  with  the  articles  themselves,  as  in 
the  case  of  lumber  in  open  piles,  wood,  coal,  rails,  hay  in  stacks,  etc. 
For  such  articles  the  cards  m.ay  be  kept  in  a  tray  upon  the  storehouse 
clerk's  desk,  but  experience  has  shown  that  bin  cards  should  be  kept 
with  the  articles  in  every  case  where  practicable. 

When  one  side  of  the  card  has  been  filled,  the  other  side  should 
be  used,  and  when  both  sides  have  been  used,  the  balance  should  be 
carried  to  a  new  card  and  the  old  card  carefully  filed  for  future 
reference. 

If  an  article  has  been  received  at  a  certain  invoice  price,  it 
should  be  issued  3t  that  price  until  the  old  stock  is  exhausted,  when 
a  new  price  may  be  used,  if  a  later  invoice  shows  a  change  to  be 
necessary. 

In  the  case  of  mercantile  stores,  which  are  to  be  sold,  the  invoice 
price,  plus  freight  and  handling,  and  a  reasonable  amount  of  profit 
should  be  added,  in  order  to  arrive  at  a  basis  for  unit  price. 

Stock  ledger  card  {Form  7-588). — Instrtictions  as  follows: 

These  cards  are  to  be  issued  to  storehouses,  mercantile  stores,  or 
other  issuing  departments. 

Upon  the  basis  of  a  complete  inventory  enter  under  the  proper 
date  the  total  money  value  of  the  property  with  which  the  storehouse 


34 

is  charged.  At  the  end  of  each  day  enter  the  total  number  of 
invoices  received,  and  the  total  valuation  of  such  invoices  for  that 
day's  business. 

Returns  of  equipment  and  supplies  should  be  treated  as  invoices, 
and  their  monej'  value  should  also  be  taken  up  on  this  card  under 
the  correct  date. 

Also  enter  with  invoices  of  articles  received,  the  charges  for 
freights,  wagon  hauling,  etc.,  as  explained  in  the  instructions  for  use 
of  the  bin  card. 

Under  the  caption  '"issued"  enter  the  total  rumber  of  requisi- 
tions filled,  and  the  valuation  of  issues.  The  balance  represents  the 
money  value  of  the  stock  on  hand. 

When  one  side  of  the  card  has  been  filled,  use  the  other  side, 
and  when  both  sides  have  been  used,  carry  the  balance  forward  to  a 
new  card,  and  file  the  old  card  for  future  reference.  Keep  the  current 
card  in  its  holder  on  or  near  the  desk. 

Local  hill  of  lading  (Form  7-585). — Instructions  as  follows: 

Number  all  blanks  with  a  numbering  machine  in  triplicate  and 
consecutively,  and  issue  to  engineers,  superintendents,  and  foremen, 
purchasing  agents,  forwarding  agents,  and  others  who  may  ship 
supplies  and  equipment  by  wagon  or  stage  from  railroad  point  to 
project  works.  The  blank  spaces  for  name  of  project  may  be  filled 
in  with  rubber  stamip.  Forwarding  agents  and  others  making  ship- 
ments will  fill  in  these  blanks  in  triplicate,  retaining  the  triplicate, 
or  yellow  copy,  for  their  protection,  and  place  the  white  and  pink 
copies  in  an  envelope,  which  is  then  sealed  and  handed  to  the  team- 
ster. When  the  shipment  is  brought  to  the  storehouse  or  destination, 
the  storehouse  clerk  will  open  the  envelope  and  check  against  the 
load.  If  the  load  checks,  he  will  stamp  on  both  the  white  and  pink 
copies  the  invoice  receipt  stamp,  showing  that  the  goods  have  been 
received  in  good  order;  the  pink  or  duplicate  copy  is  given  to  the 
teamster  to  be  sent  in  with  his  bill  at  the  end  of  the  month;  and  the 
Avhite  or  original  copy  is  sent  to  the  office,  where  at  the  end  of  the 
month  it  is  used  to  check  the  teamster's  bill.  If,  however,  a  short- 
age in  the  load  is  discovered,  the  storehouse  clerk  will  make  note  on 
both  copies  of  the  extent  of  the  shortage,  and  price,  receipting  for 
the  balance  of  the  shipment.  This  shortage  the  office  will  either  have 
replaced  by  the  teamster,  or  the  money  valuation  deducted  from  the 
teamster's  bill. 


35 

This  form  of  local  bill  of  lading  is  available  both  where  the 
hauling  is  done  by  outsiders  at  a  given  rate  per  cwt.,  per  cord,  or  per 
load,  etc.,  and  also  where  the  hauling  is  done  by  an  employee  who  is 
paid  at  a  per  diem  or  monthly  rate.  Its  purpose  is  to  determine  the 
responsibility  of  the  teamster  in  both  cases,  and  in  the  former  to 
also  show  the  amount  earned. 

CORRALS. 

Corrals  to  which  are  issued  suppHes  such  as  hay  and 
grain,  to  be  fed  to  animals  working  on  several  features  of 
the  project,  may  be  treated  as  part  of  the  storehouse,  and 
may  be  termed  Distributing  corrals.  Such  corrals  should 
issue,  on  requisition  only,  any  feed  for  animals  not  fed  at 
this  corral,  and  employed  on  features  at  distant  points.  This 
requisition  should  be  handled  in  accordance  with  the  instruc- 
tions given  in  the  Requisition  Book.  When  the  corral  is  lo- 
cated near  the  storehouses,  the  requisition  may  be  sent  to 
the  storehouse  instead  of  to  the  corral  direct,  the  storehouse 
clerk  approving  the  requisition  and  passing  it  on  to  the  cor- 
ral foreman  to  be  filled.  The  corral  foreman  will  have  com- 
plete charge  of  his  corral  and  of  such  teamsters  as  keep  their 
horses  there.  He  will  report  to  the  chief  clerk  or  to  the 
storehouse  clerk  the  number  of  animals  fed  during  the 
month,  and  the  number  of  feeds,  keeping  horses  and  mules 
separately — the  amount  of  hay  and  grain  used  and  issued 
during  the  month,  number  of  horse  days,  idle  time  horse 
days,  and  balance  of  feed — in  tons  or  pounds — on  hand  at 
the  end  of  the  month.  He  will  also  report  the  amount  of 
hay  and  grain  received  during  the  month.  Prices  will  be 
inserted  at  the  office. 

As  in  the  case  of  the  mess  houses,  the  office  will  make 
out  a  comparative  statement  covering  all  corrals  showing 
cost  of  forage  at  end  of  a  given  month,  receipts,  and  issues 
during  the  month,  balance  on  hand  at  the  end  of  the  month, 


36 

amount  consumed,  horse  days,  and  cost  per  horse  day,  these 
same  figures  plus  corral  labor  and  cost  per  horse  day,  and 
all  figures  plus  corral  supplies  (medicines,  grease,  etc.),  and 
total  cost  per  horse  per  day.  (Sec  Monthly  feature  reports.) 
These  reports  should  be  sent  out  to  all  foremen.  As  a 
rule,  the  office  will  add  the  freight  charges  for  all  articles, 
if  these  have  not  already  been  added  to  the  invoice  price 
when  forage  was  issued  to  the  corral. 

As  the  charges  for  maintenance,  feed,  repairs,  salaries 
of  foremen  and  helpers,  freight  and  handling,  are  recorded 
in  the  office,  it  only  remains  to  divide  the  number  of  horse 
days  into  the  total  monthly  cost  to  find  the  cost  per  horse 
day.  The  corral  charge  for  each  feature  is  obtained  by 
multiplying  the  cost  of  each  horse  day  by  the  number  of 
horses  used  on  that  feature.  The  timekeeper  must  charge  to 
each  feature  direct  the  wages  of  the  teamster  working  on 
that  feature. 

Corrals  that  do  not  distribute  charges  should  be  handled 
in  practically  the  same  manner  as  distributing  corrals,  but 
they  will  not  issue  forage  on  requisition,  unless  they  receive 
enough  visiting  animals  from  other  projects  to  warrant  the 
making  out  of  requisitions  to  cover  charges  for  feeding.  In 
such  a  case,  requisitions  should  be  made  out  so  that  the  par- 
ticular feature  may  receive  credit  at  the  project  office,  and 
the  proper  feature  may  be  debited.  , 

EQUIPMENT. 

Equipment  includes  all  machinery,  tools,  implements, 
vehicles,  animals,  instruments,  furniture,  utensils,  etc.,  that 
are  used  on  the  project  and  that  do  not  enter  into  the  perma- 
nent construction,  like  materials,  nor  are  consumed  in 
various  operations,  as  repairs,  except  as  to  wear  and  tear. 
The  accountability  for  all  such  equipment   will  rest   with  the 


37 

various  project  offices,  the  office  of  the  Chief  Engineer  being 
interested  only  in  the  money  valuation  of  the  balance  on 
hand. 

The  office  of  the  Chief  Engineer  will  keep  its  own  equip- 
ment records  and  will  be  treated  in  the  same  manner  as  any 
project  office,  and  handle  its  accounts  independently.  The 
plan  described  in  the  foregoing  pages  provides  that  every 
voucher  for  the  purchase  of  any  equipment,  material,  sup- 
plies, etc.,  may  be  traced  back  to  the  original  invoice  and 
purchase  order  on  and  to  the  original  requisition  on  whicfi 
it  was  issued  from  the  storehouse.  The  storehouse  and  in- 
ventory accounts  should  show  receipts  and  issues  of  all 
articles  handled.  The  equipment  records  should  be  kept  in 
the  same  manner,  and  should  show  the  amount,  value,  and 
distribution  of  all  equipment  with  which  the  project  is 
charged.  Such  accounts  should  be  kept  in  the  equipment 
record  by  the  property  inspector,  wdio  should  have  responsible 
charge  of  them  and  of  all  matters  pertaining  to  equipment. 
The  accounts  with  each  article  of  equipment  should  be  ar- 
ranged alphabetically,  as  should  all  intermediate  or  sub- 
sidiary papers. 

The  equipment  record  (form  7-604)  should  be  used  in 
accordance  with  the  following  instructions : 

The  property  inspector  should  use  this  form  in  keeping  a  com- 
plete record  of  the  equipment  with  whicli  his  proiect  is  chargeable. 

A  sufficient  number  of  sheets  in  the  front  portion  of  the  binder 
should  be  inserted  for  the  handling  of  the  accounts  for  each  feature, 
camp,  or  party  of  the  project,  and  in  the  back  of  tire  binder  leaves 
should  be  reserved  for  controlling  accounts  to  cover  the  project 
equipment  accountability.  These  two  sets  of  accounts  should  always 
be  in  balance. 

The  storehouse  and  mercantile  store  should  be  considered  as 
project  features. 

Number  the  pages,  when  practicable,  and  fill  in  the  spaces  pro- 
vided  for  "Project,"  "Feature,"   ".Article,"  "Class,  number,  or  size," 


38 

and  "Responsible."  When  handling  the  project  equipment  account- 
ability records,  the  space  for  "Feature"  and  "Responsible"  need  not 
be  filled  in. 

Upon  the  basis  of  an  inventory,  which  should  be  taken  before 
opening  the  books,  open  an  account  on  the  debit  side  with  each  ar- 
ticle of  equipment  distributed  over  the  project,  by  features,  camps, 
or  parties,  inserting  the  date  of  taking  the  inventory. 

"Voucher  No."  has  reference  to  the  number  of  the  particular 
purchase  order,  transfer  of  equipment,  or  requisition  covering  a 
manufactured  article,  and  all  such  paptrs,  as  they  come  into  the 
project  office,  should  be  referred  to  the  property  inspector  foi"  his 
information,  and  in  order  to  allow  him  to  keep  his  records  up  to 
date,  he  initialing  the  same  when  their  contents  have  been  noted. 
The  space  for  "Name  of  Voucher"  is  for  the  insertion  of  the  names 
of  these  forms.     Fill  in  spaces  for  "Quantity"  and  "Value." 

On  the  credit  side  of  the  accounts  with  each  article,  all  fea- 
tures, camps,  or  parties  should  be  credited  with  any  articles  trans- 
ferred, worn  out,  lost,  or  sold,  filling  in  spaces  for  "Date,"  "Name 
of  Voucher,"  "Quantity,"  and  "Value."  "Voucher  No."  is  intended 
to  cover  transfer  of  equipment,  equipment  inspection  report,  affi- 
davit, or  auction  sales  report. 

The  "On  hand"  column  is  for  "Quantity"  and  "Value"  of 
balance. 

The  controlling  accounts  for  project  equipment  accountability 
should  be  handled  in  precisely  the  same  manner  as  are  the  feature 
accounts. 

These  two  sets  of  accounts  should  be  kept  absolutely  up  to 
date,  and  as  the  information  affecting  the  equipment  records  reaches 
the  property  inspector  it  should  at  once  be  entered  on  the  bo-oks. 
This  is  imperative  in  order  that  engineers,  superintendents,  foremen, 
and  others  concerned  may  be  able  to  locate  any  article  or  class  of 
articles  without  delay,  so  that  the  availability  of  certain  equipment 
for  transfer  to  other  projects  or  project  features,  to  meet  certain 
emergencies,  may  at  once  be  determined. 

When  accounts  with  certain  features,  camps,  or  parties  die  or 
become  inactive,  they  may  be  taken  from  the  binder  and  filed  for 
future  reference. 

The  equipment  record  should  account  for  all  such  ar- 
ticles as  power  developers,  stationary  engines,  boilers,  gas 
engines,  water  motors,  electric  generators  and  motors,  ma- 


39 

chinery,  locomotives,  cars,  tracks,  cableways,  skips,  forges, 
graders,  scrapers,  plows,  harness,  instruments,  office  ap- 
pliances, furniture,  tents,  etc.  The  equipment  record  should 
be  a  perpetual  inventory,  and  should  be  kept  up  to  date  in 
every  particular,  and  in  order  that  this  may  be  done,  the 
property  inspector  should  take  frequent  inspection  trips  to 
the  various  project  features,  checking  up  equipment  on  hand, 
arranging  for  the  condemnation  of  worn  out  and  worthless 
implements,  or  the  sale  or  transfer  of  other  equipment. 
Foremen  and  other  heads  of  parties  should  be  required  to 
give  a  strict  accounting  of  such  property  as  may  be  miss- 
ing, and  should  a  shortage  be  noted,  be  required  to  make 
good  any  such  shortage,  if  it  is  the  result  of  carelessness  or 
neglect  in  carrying  out  instructions. 

The  property  inspector  should  also  see  that  equipment 
is  properly  cared  for,  and  not  allowed  to  be  unduly  exposed 
to  the  weather  or  abused  in  any  w^ay. 

In  order  that  the  property  inspector  may  keep  his  rec- 
ords up  to  date,  he  should  be  required  to  check  and  initial 
every  paper  recording  transactions  in  equipment,  including 
receipted  invoices,  requisitions,  or  transfers  of  equipment 
coming  from  the  storehouse  or  other  issuing  department  to 
the  office. 

All  public  property,  when  practicable,  should  be  branded, 
and  it  is  generally  advisable  to  open  a  book  showing  hoof 
and  body  brands,  color,  age,  etc.,  of  animals,  make  and  size 
of  wagons,  etc.,  so  that  later  on,  should  occasion  require  it, 
such  property  could  be  identified  in  case  of  loss  or  theft. 

A  uniform  badge  has  been  adopted  for  the  use  of  the 
property  inspector,  which  he  should  wear,  and  which  may 
be  had  on  requisition  to  the  office  of  the  Chief  Engineer. 
On  large  projects  covering  a  great  deal  of  territory,  this 
badge  will  be  found  very  useful,  especially  when  the  in- 
spector visits  camps  where  he  is  unknown  to  the  foreman. 


40 

and  some  doubt  may  exist  as  to  his  authority  to  make  an  in- 
spection. The  equipment  inspection  report  (form  7-592) 
should  be  used  when  making  an  inspection.  Instruction  for 
the  use  of  same  is  printed  on  its  back. 

It  will  be  unnecessary  for  foremen  and  others  to  return 
to  the  storehouse  articles  that  they  may  consider  to  be  worn 
out  or  worthless.  Such  articles  should  be  collected  and  kept 
in  a  pile  until  the  inspector  makes  his  rounds.  After  the  in- 
spector has  looked  over  the  property  in  a  particular  camp 
he  should  complete  his  inspection  report  and  sign  it  in  dupli- 
cate, having  the  engineer,  foreman,  or  other  responsible  per- 
son in  charge  of  the  camp  sign  also  and  affix  his  title. 
Requisitions  or  transfers  should  also  be  made  out  by  the 
person  in  charge  of  the  feature  in  order  to  adjust  any  dis- 
crepancies. 

In  case  certain  articles  are  found  that  are  of  no  service 
to  the  government,  but  would  probably  warrant  the  cost  of 
a  sale,  they  should  be  transferred  to  the  storehouse  and  kept 
in  a  separate  place  and  later  sold. 

If  any  articles  have  been  destroyed  by  the  inspector,  he 
should  have  the  engineer,  superintendent,  or  foreman  of  the 
feature  or  camp  make  out  a  certificate  as  to  loss,  destruc- 
tion, or  other  disposition  of  equipment  (form  7-615 — in- 
structions on  back),  in  duplicate,  one  copy  being  kept  by 
the  party  chief,  and  the  other  retained  by  the  inspector  for 
his  protection,  and  for  use  in  adjusting  his  records.  In- 
structions concerning  the  use  of  this  form  are  printed  on  its 
back. 

The  instructions  below  should  be  followed  in  regard  to 
the  transfer  of  equipment  (form  7-586)  : 

Number  all  blanks  with  a  numbering  machine  in  triplicate  and 
consecutively,  and  issue  to  the  engineers,  superintendents,  and  fore- 
men, and  others  who  have  charge  of  parties,  or  who  may  have 
property  or  equipment  to  transfer  from  one  feature  of  a  project  to 
another   from   time  to  time. 


41 

The  blank  spaces  provided  for  the  insertion  of  the  name  of 
project  may  be  filled  in  with  rubber  stamp. 

These  books  are  intended  primarily  to  be  used  in  the  transfer 
of  equipment  only,  but  they  may  be  used  for  transferring  supplies 
and  other  property  when  necessar}'.  The  party  desiring  the  use  of 
the  equipment  to  be  transferred  will  make  out  the  transfer  request 
in  triplicate,  using  carbon  sheet  for  impression,  and  sign  his  name 
and  title.  The  party  receiving  the  equipment  for  the  requisitionor 
should  affix  his  signature  and  title.  The  party  issuing  the  equipment 
should  retain  in  his  possession  the  white,  or  original  copj',  return  to 
the  requisitionor  the  pink,  or  duplicate  copy,  and  forward  to  the 
project  office,  at  once,  the  yellow,  or  triplicate  cop\'.  The  project 
office  will  make  the  proper  debits  and  credits,  that  office  inserting 
prices. 

In  turning  over  equipment  to  the  property  inspector  or  store- 
house, on  the  completion  of  certain  work,  these  blanks  should  be 
used.  Hngincji-i,,  superintendents,  foremen,  and  others,  slwnld  he 
informed  that  unless  this  form  is  used  in  the  transfer  of  equipment, 
no  credit  on  t!ir  books  zvill  be  given  to  parties  loaning  or  trans- 
ferring. 


When  a  sufficient  amount  of  worn-out  or  useless  equip- 
ment has  been  accumulated  to  warrant  the  holding  of  a  sale, 
the  project  or  supervising  engineer,  at  the  instance  of  the 
property  inspector,  should  appoint  a  board  of  survey.  One 
of  the  board  should  be  the  property  inspector.  Form  7-613 
(report  of  survey)  should  be  used  in  connection  with  the 
appointment  of  such  a  board,  and  the  same  form  should  be 
used  for  their  report.  Instructions  covering  the  use  of  this 
form  are  printed  on  its  back. 

It  is  not  at  all  necessary  that  equipment  should  be  sold 
at  auction  in  every  instance.  It  may  be  sold  on  sealed  bids 
invited  from  all  persons  likely  to  compete,  or  at  private 
sale,  when  there  is  no  possibility  of  securing  competition  and 
this  condition  is  shown. 

The  inspection  of  equipment  should  be  given  every  care 
and  thought,  and  property  should  not  be  sold  which,  with 


42 

a  reasonable  amount  of  repairing,  might  do  service  for  a 
number  of  years.  Five  individual  wagons,  for  instance, 
might  be  unserviceable,  but  if  dissembled  and  the  serviceable 
portions  of  each  assembled,  make  one  or  more  serviceable 
vehicles. 

Equipment  should  be  classified,  sorted  in  lots,  and  so 
arranged  at  its  sale  as  to  show  off  to  advantage  to  the  pro- 
spective buyer. 

As  a  rule  the  services  of  an  auctioneer  should  be  pro- 
cured when  an  auction  sale  is  contemplated,  as  the  employ- 
ment of  a  man  whose  business  it  is  to  conduct  such  sales 
tends  to  increase  the  prices  received.  His  expenses  may  be 
paid  out  of  the  gross  receipts  of  the  sale,  a  sub-voucher  being 
taken  therefor.  However,  a  member  of  the  service  may  be 
detailed  by  the  project  engineer  to  act  in  this  capacity  when 
necessary. 

In  submitting  a  report  of  sale  to  the  office  of  the  Chief 
Engineer,  a  copy  of  the  report  of  survey  and  of  an  order 
from  the  project  or  supervising  engineer  to  some  person — 
preferably  the  purchasing  agent  or  storehouse  clerk — to 
conduct  such  a  sale  by  auction,  on  sealed  bids  or  at  private 
sale,  covering  equipment  as  per  report  of  survey  of  a  given 
date,  should  accompany  such  a  report. 

This  report  should  also  show  place,  date,  and  kind  of 
sale.  If  the  sale  was  conducted  privately,  the  reasons  for 
holding  it  in  this  manner  should  be  stated,  and  also  the 
number  of  advertisements  sent  out  and  posted,  the  number 
of  proposals  received  in  reply  and  an  abstract  of  same.  A 
list  arranged  alphabetically  should  also  be  furnished,  show- 
ing articles  sold,  names  and  addresses  of  purchasers,  prices 
received,  and  gross  amounts. 

Below  the  expense  of  holding  the  sale  should  be  stated 
the  balance  and  the  remittance  sent  with  report. 


43 

An  auction  sale  notice  may  be  required ;  and  if  so,  one 
may  be  printed  locally.    Such  a  notice  may  be  as  follows : 

PUBLIC  AUCTION. 
To  be  sold  at  Public  Auction — 
Public  Animals 

and  Material. 
The  property  of  the  U.  S.  Reclamation  Service,  as  follows : 
(Here  follows  listing  of  articles.) 

Sale  to  take  place  at . 

Terms :    Cash  on  delivery  of  the  propertj'. 

Bj'  order  of  the   Supervising  Engineer,  Project, 

U.  S.  Reclamation  Service. 

Signature, . 

Title,  " . 

All  animals  and  property  sold  should  be  branded  or 
marked  "I.  C." — the  initials  for  Inspected  and  Condemned. 

STATIONERY. 

Stationery  should  be  received  and  isstied  on  requisition, 
and  should  be  handled  in  the  same  manner  as  the  material 
described  under  the  heading  '"Storehouses."  On  projects 
where  the  office  and  storehouse  are  not  far  apart,  it  may  be 
convenient  to  have  the  storehouse  receive  and  issue  station- 
ery. In  other  cases  it  should  be  in  the  charge  of  a  Stationery 
Clerk. 

Requisitions  on  the  office  of  the  Chief  Engineer  should 
be  given  a  purchase  order  number,  and  be  handled  in  the 
same  manner  as  an  order  on  any  firm.  When  the  Stationery 
Clerk  has  reason  to  think  that  the  office  of  the  Chief  En- 
gineer will  ship  material  by  mail,  but  two  copies  of  the 
order  need  be  made  out — one  going  to  the  office  of  the  Chief 
Engineer,  and  the  other  being  filed  on  an  "Unfilled  Orders" 
spindle. 

All  stationery  should  be  kept  under  lock  and  key,  and 


.  44 

be  stored  as  far  as  practicable  in  one  place — care  being  taken 
to  keep  the  stock  up. 

In  order  to  save  time  it  may  be  a  good  practice  to  place 
on  shelves  by  themselves  such  articles  of  stationery  as  will 
be  in  constant  demand  in  the  office,  and  make  one  issue  of 
them,  and  thus  save  time  and  labor  in  making  frequent  en- 
tries on  the  cards.  The  Stationery  Clerk  should  use  good 
judgment  in  filling  requisitions,  and  not  allow  his  stock  to 
become  depleted  on  account  of  the  desire  of  some  chief  of 
field  party  to  obtain  more  of  a  certain  article  than  is  abso- 
lutely necessary  to  cover  his  needs  for  a  reasonable  length 
of  time.     (Sec  also  Storehouses.) 

MERCANTILE  STORES. 

It  sometimes  becomes  necessary  on  the  projects  of  the 
Reclamation  Service  to  operate  one  or  more  mercantile 
stores,  and  to  board  the  men  at  project  mess  houses.  It  is 
not  intended,  however,  to  operate  such  stores  unless  it  ap- 
pears to  be  absolutely  necessary,  and  reliable  dealers  cannot 
be  induced  to  locate  on  or  near  the  project  works. 

HANDLIxNTG   OF   SUPPLIES   AND    MATERIAL. 

The  merchandise  kept  for  sale  in  the  mercantile  stores 
is  handled  in  precisely  the  same  manner  as  articles  kept  in 
Storehouses,  and  such  articles  should  be  checked  up  once  a 
month. 

Requisitions  should  be  made  on  the  storehouses  for 
the  articles  needed,  and  the  matter  handled  in  the  ordinary 
manner — a  copy  of  the  requisition  going  through  the  project 
offices.  Requisitions  on  the  mercantile  store,  however,  will 
not  be  honored — either  cash  or  coupon  being  necessary  for 
the  purchase  of  articles  thereat. 

In  case  the  mercantile  store  has  an  oversupply  of  ar- 
ticles or  material  on  hand,  which  it  cannot  dispose  of,  it  can 


45 

be  transferred  to  the  accounts  of  the  storehouse  through  the 
use  of  the  ordinary  transfer  of  equipment  form. 

SELLING   PRICK   OX    MERCHANDlSIv. 

The  prices  on  all  articles  placed  on  sale  at  the  mercan- 
tile stores  should  be  high  enough  to  cover  purchase  price, 
transportation,  handling,  wastage,  and  a  fair  profit ;  but  local 
prices  on  the  same  articles  should  be  considered,  and  prices 
adjusted  so  as  not  to  be  unfair  to  private  merchants. 

CREDITS  AGAINST  ACCRUED  WAGES. 

In  order  to  provide  a  safe  method  for  permitting  em- 
ployees to  make  purchases  and  to  obtain  meals  on  account 
of  wages  earned,  but  not  paid,  books  of  coupons,  good  only 
at  the  mercantile  stores,  and  meal  tickets,  good  only  at  the 
project  mess  houses,  or  good  only  at  contractor's  mess 
houses,  have  been  prepared,  and  should  be  issued  from  time 
to  time  to  those  employees  whose  earnings  are  shown  by  the 
Employee's  Ledger  Card  as  sufficient  to  warrant  such  credits. 
The  totals  for  such  charges  for  meal  tickets,  coupon  books, 
rent,  hospital,  badge,  or  any  other  articles  or  services,  should 
be  deducted  from  the  accrued  wages  on  the  pay  roll  vouchers 
already  mentioned. 

The  coupon  books  are  made  up  for  $3,  $5,  and  $10,  and 
brief  instructions  governing  their  use  are  printed  on  the  in- 
side of  their  covers.  Neither  the  meal  tickets  nor  coupons 
will  be  numbered  at  the  office  of  the  Chief  Engineer — at 
least  for  the  present — that  being  left  for  the  project  offices. 

The  weekly  meal  ticket  is  for  $5.25  (21  meals),  and 
brief  instructions  concerning  its  use  are  printed  on  each 
ticket.  The  amount,  $5.25,  has  been  filled  in,  as  this  price 
conforms  more  nearly  to  the  general  price  for  which  sub- 
sistence* can  be  furnished  throughout  the  United  States,  and 
in  cases  where  the  price  is  either  too  high  or  too  low,  it  can 


46 

be  changed  to  suit  local  conditions  when  requisitions  for 
such  tickets  are  received  at  the  office  of  the  Chief  Engineer. 

The  transient's  meal  ticket,  25c,  is  to  be,  used  by  vis- 
itors, travelers,  and  others  who  may  desire  one  or  more 
meals  at  a  project  mess  house.  Simple  instructions  govern- 
ing its  use  are  printed  on  the  back,  and,  as  in  the  case  of 
the  meal  ticket  and  the  contractor's  meal  ticket,  its  price  may 
be  changed  to  meet  local  conditions. 

The  contractors'  meal  ticket  is  for  $5.25  (21  meals), 
and  should  be  issued  to  employees  who  may  be  subsisted  at 
contractors'  camps — the  contractor  turning  in  each  month 
with  his  bill  tickets  for  such  meals  as  he  may  have  fur- 
nished. Brief  instructions  governing  their  use  are  also 
printed  on  the  back  of  each  ticket ;  and  as  in  the  case  of  the 
meal  ticket,  the  price  may  be  changed  to  meet  local  condi- 
tions, on  application  to  the  office  of  the  Chief  Engineer. 

The  use  of  the  employees'  ledger  card  (form  7-603)  is 
apparent,  but  brief  instructions  governing  its  use  are  printed 
on  it. 

DEDUCTIONS  FROM  WAGES  OF  EMPLOYEES. 

Forms  of  vouchers  have  been  provided  for  deductions 
from  the  earnings  of  employees — Subsistence  pay  roll  vouch- 
ers (9-554,  9-554A,  and  554-B)  and  Pay  roll  sub-vouchers 
(9-539A  and  9-539B).  Instructions  concerning  the  use  of 
these  forms  are  printed  on  the  back  of  form  9-539. 

CHECKS  ON  ISSUE  OF  CREDITS. 

Meal  tickets  and  coupon  books,  as  already  stated,  are 
to  be  issued  only  by  the  bookkeeper  when  an  employee's  ac- 
crued wages  warrant  such  a  credit.  The  bookkeeper  is 
charged  with  a  supply  of  coupon  books  and  meal  tickets,  is- 
sued from  the  office  of  the  Chief  Engineer,  and  credits  his 
account  as  they  are  issued  to  employees.    He  is  at  all  times 


47 


accountable  for  the  unissued  coupon  books  and  meal  tickets. 
A  monthly  statement  should  be  submitted  to  the  Chief  En- 
gineer, showing  the  value  of  the  tickets  and  books  out- 
standing at  the  end  of  the  last  previous  month,  and  the 
value  of  the  issues  during  the  current  month ;  also  the  value 
of  the  tickets  and  coupons  received  for  meals  and  sales  dur- 
ing the  current  month,  and  the  value  of  the  tickets  and 
books  outstanding  at  the  end  of  the  current  month.  (See 
Statement — Operations  of  Mercantile  Stores  and  Mess 
Houses:  Form  7-612.) 

Brief  instructions  governing  its  use  will  be  found  on  its 
back. 

CHECKS  ON  STOREKEEPER. 

In  order  to  secure  a  sufficiently  accurate  check  on  the 
storekeeper  and  his  clerks,  cash  registers  have  been  pur- 
chased.   These  are  fully  described  as  follows : 

Style  of  cash  register  for  tise  in  mercantile  stores. 


Class  of  Articles. 

Dollars. 

Dollars. 

Cents. 

Cents  and 
Clerks 

O-90 
O-80 
O-70 
O-60 
O-50 
O-40 
O-30 
0-20 
0-10 

0-9 
0-8 
0-7 
0-6 
0-5 
0-4 
0-3 
0-2 
0-1 

O-90 
O-80 
O-70 
O-60 
O-50 
O-40 
O-30 
0-20 
0-10 

0-5A 

0-5B 

O-Xobacco 

0-5D 

0-5E 

O-Clothing     

O-X-Miscellaneous 

O-A 

O-B 

O-D 

O-Charge 

O-E 

This  cash  register  makes  the  following  records : 

1.  Amount  of  sale  for  any  amount  divisible  by  five  cents  from 
$0.05  to  $99-95- 

2.  Letter  indicating  which  of  four  salesmen  made  the  sale. 

3.  Character  of  article  sold  in  one  of  si.x  classes,  viz. : 

"Gr" — Indicating  staple  groceries ; 


48 

"Tb" — Indicating  tobacco  in  its  various  forms; 
"Mt" — Indicating  meat,  butter,  eggs,  etc. ; 
"Sh"- — Indicating  shoes  and  boots  ; 
"CI" — Indicating  clothing; 
"X" — Indicating  miscellaneous  purchases  not  belonging 

to  any  of  the  previous  classes,  such  as  toilet  articles, 

stationery,  'etc. 

4.  Character  of  paym'ent  received,  whether  cash  (to  be- remitted 
to  office  of  Chief  Engineer),  or  coupons  charged  against  and  de- 
ducted from  the  wages  of  the  employee  on  the  regular  pay  roll. 

5.  For  each  sale  it  is  necessary  to  register  price,  character  of 
article,  and  salesman  to  open  cash  drawer.  When  so  registered,  a 
cash  sale  is  recorded.  For  a  coupon  sale,  the  coupon  key  must  be 
used  in  addition  to  the  above  three  requirements.  The  register  prints: 

(a)   A  slip  for  the  customer  showing  all  the  history  of 

the  sale  as  above, 
(b)   A  record  on  a  continuous  strip,  inaccessible  to  the 
salesman,  but  obtainable  by  the  chief  clerk  of  the 
office,  which  is  a  check  against  the  daily  sales  and 
which  is  turned  in  to  the  project  office. 

6.  The  register  also  shows  the  total  number  of  transactions  and 
the  number  of  times  the  adding  machine  has  been  turned  back  to 
zero. 


HANDLING  CASH. 

In  order  to  reduce  to  a  minimum  the  possibility  of  loss 
through  the  handling  of  cash,  the  system  of  credit  against 
accrued  wages  which  has  been  described  should  be  en- 
couraged. It  is  not  possible,  however,  to  entirely  eliminate 
cash  transactions.  Credits  can  be  given  only  to  such  em- 
ployees as  have  wages  earned  and  unpaid,  and  at  times  it  is 
necessary  that  sales  should  be  made  to  persons  not  directly 
on  the  pay  roll  of  the  project — as  to  employees  of  a  contrac- 
tor, or  to  engineers  of  the  Service,  temporarily  on  the  work. 
It  has  accordingly  been  decided  that  all  such  receipts  shall  be 
transmitted  monthly  to  the  office  of  the  Chief  Engineer,  and 
that  with   such  remittance  there  should  be  a  statement  of 


49 

the  operations  of  the  stores  and  mess  houses  during  the 
month.  Statement — Issue  and  redemption  of  coupon  books 
and  meal  tickets  (form  7-61 1)  should  be  used  for  the  pur- 
pose ;  instructions  governing  its  use  will  be  found  on  its 
back. 

MESS  HOUSES. 

Project  engineers  maintaining  one  or  more  mess  houses 
should,  when  the  mess  is  large  enough,  place  it  in  the  charge 
of  a  steward,  who  will  make  requisitions  on  the  storehouse 
through  the  chief  clerk.  The  steward  should  look  after  all 
details  in  connection  wuth  the  operation  of  the  mess,  punch 
meal  tickets  of  employees,  report  the  number  of  meals  served, 
make  out  inventories  at  the  end  of  each  month,-  showing  the 

amount  of  supplies  and  material  on  hand,  and  attend  to  any 
other  duties  connected  with  the  proper  management  of  a 
boarding  house.  As  the  steward  may  frequently  be  called 
on  to  furnish  the  mercantile  store  with  supplies  that  will 
then  be  offered  for  sale,  he  should  work  in  conjunction  with 
the  mercantile  store  clerk,  and,  as  a  rule,  his  instructions 
should  come  through  him. 

A  complete  record  should  be  kept  of  the  meals  served  at 
a  mess  house  during  the  month.  In  a  small  mess  house 
which  does  not  use  meal  tickets  this  may  be  done  by  means 
of  an  ordinary  time  book,  but  in  a  large  one  a  recording 
punch  should  be  used  and  each  man's  ticket  punched  every 
time  he  obtains  a  meal.  Such  a  punch  has  been  adopted  for 
general  use,  and  may  be  had  by  requisition  on  the  ofifice  of 
the  Chief  Engineer.  On  some  projects  complaint  has  been 
made  that  an  employee  may  frequently  skip  one  meal  and 
eat  at  the  next  the  amount  ordinarily  consumed  at  two  meals. 
In  such  cases  the  intermediate  meal  should  be  punched  in 
accordance  wdth  the  instructions  on  the  back  of  meal  tickets. 


30 

It  will  only  require  a  few  lessons  of  this  kind  to  teach  the 
laborer  to  take  his  meals  regularly,  and  admit  of  the  steward 
keeping"  a  good  check  on  his  man  days  for  which  food  was 
prepared.  A  record  of  the  meals  served  in  large  mess 
houses  should  be  furnished  the  chief  clerk  each  day. 

Stewards  should  see  that  all  supplies  and  subsistence 
in  each  mess  house  are  kept  under  lock  and  key.  Provisions 
should  be  issued  by  the  steward  to  the  cook  and  no  other 
employee  should  have  access  to  the  stores.  The  steward 
should  render  an  inventory  statement  at  the  end  of  each 
month  showing  the  amount  of  subsistence  and  supplies  on 
hand.  The  prices  can  be  entered  at  the  office  from  storehouse 
records.  On  the  basis  of  an  inventory  on  the  first  of  the 
month,  the  issues  during  the  month — which  the  office  will 
have  in  its  General  Classification  Book — and  an  inventory 
at  the  end  of  the  month,  together  with  the  total  number  of 
meals  served,  a  comparative  statement  for  the  various  mess 
houses  on  a  project  should  be  made  up  for  the  information 
of  the  project  engineer.  (Sec  aiso  Monthly  feature  reports.) 
Such  report  should  be  made  out  to  cover  cost  per  man,  per 
day,  for  subsistence  supplies  only,  same  cost  for  subsistence 
supplies  and  other  supplies  (including  soap,  brooms,  sapolio, 
etc.),  with  these  costs,  plus  freight,  and  all  these  costs,  plus 
subsistence  labor.  A  copy  of  this  report  should  be  sent  to 
all  mess  house  stewards  or  cooks,  with  letters  of  incjuiry  as 
to  the  necessity  for  a  large  figure  at  such  mess  houses  as 
are  running  high  in  their  costs.  If  the  costs  of  the  various 
mess  houses  do  not  run  very  close  together,  there  is  always 
some  way  in  which  to  account  for  it,  and  generally  it  is  waste 
or  dishonesty.  This  report  being  sent  to  all  mess  houses 
also  causes  rivalry  among  stewards,  and  they  become  inter- 
ested themselves  in  keeping  the  cost  down.  The  system  of 
accounting  and  the  blank  forms  therefor  are  described  under 
the  heading  "Mercantile  Stores." 


51 

TIMEKEEPING. 

Much  time  and  labor  will  be  saved  to  the  project  office 
by  carrying  all  employees,  including  monthly  and  annual 
men,  on  time  books. 

There  is  probably  no  class  of  employees  engaged  in 
work  connected  with  accounting  whose  duties  are  of  more 
importance  than  those  of  the  timekeeper.  As  the  element  of 
labor  entering  into  the  cost  of  the  project  is  much  greater 
than  the  sum.  of  all  other  costs,  the  importance  of  keeping 
this  labor  cost  in  an  intelligent  and  businesslike  manner  is 
apparent.  Poor  timekeepers  can  cause  the  loss  of  more 
money  and  the  useless  expenditure  of  more  time  than 
perhaps  any  class  of  employees,  and  for  these  reasons  care 
should  be  taken  in  selecting  them. 

The  timekeeper  should  be  quick,  intelligent,  and  re- 
sourceful, and  as  well  paid  as  any  employee  in  the  project 
office.  Some  projects  have  adopted  the  plan  of  using  young 
engineering  aids  as  timekeepers,  and  such  a  plan  is  a  most 
excellent  one,  as  it  not  only  insures  the  projects  having  intel- 
ligent and  educated  men  to  do  this  class  of  work,  but  by  con- 
stant contact  with  men  and  methods  tends  to  educate  the 
young  engineer  and  develop  him  for  more  important  work 
later. 

The  only  forms  the  timekeeper  will  use  are  the  Time 
Book  (form  7-595)  and  the  General  Classification  Book 
(form  7-580).  The  instructions  printed  in  the  time  book 
are  as  follows : 

Several  days  prior  to  the  end  of  the  month  each  project  time- 
keeper should  be  provided  with  a  suflficient  number  of  time  book 
sheets  to  use  for  the  party  or  parties  on  which  he  is  to  keep  time 
for  the  ensuing  month.  The  timekeeper  should  number  each  sheet, 
fill  in  the  space  for  the  year,  month,  and  feature,  and  stamp  in  the 
name  of  the  project.  He  should  then  transfer  the  names  of  such 
men    as    he    has    reason    to    believe    will    be    employed    during  the 


52 

coming  month  to  the  columns  provided  for  that  purpose,  inserting 
badge  number,  should  the  project  use  one,  together  with  occupation 
and  rate  of  pay.  If  th'e  timekeeper  has  reason  to  believe  that  duriilg 
the  month  an  employee  will  be  engaged- on  work  chargeable  to  more 
than  four  account  numbers  (the  faint  line  being  intended  for  account 
numbers),  he  should  allot  to  that  'employee  more  than  one  space; 
but,  as  a  rule,  one  space  will  be  found  sufficient  for  one  employee. 
The  account  numbers  are,  of  course,  not  inserted  until  the  employee 
has  been  found  at  work,  and  each  time  he  changes  his  duties  from 
W'Ork  chargeable  to  one  account  number  to  work  chargeable  to 
another,  the  number  should  be  inserted.  If  the  rate  of  pay  of  the 
employee  should  change  during  the  month,  he  should  be  given  a 
time  check,  paid  off  at  the  office,  and  "T.  C,"  for  time  check,  written 
on  the  line  opposite  his  name.  If  this  is  not  done,  there  should  be 
entered  on  the  time  bock  a  record  of  such  change  in  rate,  or  of 
transfer  to  another  party  or  shift,  so  that  the  pay  roll  clerk  will 
have  proper  cross  references  for  all  time  included  on  the  pay  roll. 
His  name  should  then  be  carried  to  another  space  on  the  time  book, 
with  a  note  showing  where  his  time  was  previously  recorded.  These 
initials,  "T.  C,"  are  also  to  be  written  opposite  the  names  of  any 
employees  who  ma}'  be  discharged,  or  may  have  resigned.  Should 
the  timekeeper  make  an  error  in  computing  the  amount  of  pay  for  an 
employee  and  the  error  be  detected  at  the  office  by  the  pay  roll  clerk, 
the  pay  roll  clerk  should  make  the  necessary  correction  on  the  time 
check  and  at  once  notify  the  timekeeper,  so  that  he  also  may  correct 
his  book. 

The  time  should  be  taken  on  each  party  at  least  twice  a  day, 
and  oftener  if  possible.  The  book  is  designed  fov  taking  time  four 
times  daily.  In  order  to  save  time  at  the  end  of  the  month,  and  to 
prevent  unnecessary  delays  in  sending  in  time  books  promptly  on  the 

last  day  of  the  month,  the  space  "Total  to "  should  be  utilized  to 

insert  computations  to  some  date  that  may  prove  most  convenient  to 
the  timekeeper.  The  columns  "Total  Time,"  "Amount  Earned,"  and 
"Total  Due"  are  to  be  filled  in  at  the  end  of  the  month. 

In  many  small  camps  where  the  timekeeper  is  employed  in 
several  capacities,  he  is  in  a  position  to  state  positively  the  total 
number  of  meals  taken,  or  any  other  deductions  that  have  accu- 
mulated against  each  employee.  This  is  particularly  applicable  to 
camps  where  meal  tickets  are  not  used ;  in  which  case  the  columns  for 
deductions  may  be  used.  The  timekeeper  should  then  use  a  few  pages 
of  the  general  classification  sheet  to  draw  off  all  the  account  num- 


53 

bers  of  all  the  employees  for  whom  he  may  have  kept  time  inserting 
the  account  numbers  at  the  head  of  each  column,  and  putting  under 
each  heading  the  amount  of  expense  incurred.  The  total  of  these 
liabilities  should  equal  the  total  liabilities  for  labor  as  shown  by  the 
time  bO'Ok.  On  a  blank  page  in  the  back  of  the  book  there  should 
be  inserted  this  summary  of  time  book  by  account  numbers,  as  well 
as  a  recapitulation  of  the  total  liabilities  for  labor  by  pages.  The 
total  liabilities  by  account  numbers  should  equal  the  total  liabilities  by 
pages  of  the  time  book. 

The  time  of  employees  who  have  received  time  checks  will  be 
included  in  the  recapitulation  and  summary  in  precisely  the  same 
mannei  as  the  time  of  those  who  have  not  been  paid.  When  the 
time  book  has  been  foinid  correct,  it  should  be  sent  to  the  office 
promptly,  together  with  the  rolls,  en  the  last  day  of  the  month, 
that  there  may  be  no  delay  in  paying  off  the  men.  This  time  book 
must  be  taken  out  to  the  zvorks;  the  use  of  a  mialler  time  book 
from  ivhich  daily  transfers  are  to  be  made  to  tlic  larger  one  cannot 
be  permitted.  Engineers,  superintendents,  foremen,  and  others  should 
initial  each  page  of  the  time  book  before  it  is  sent  in  to  the  office 
for  transfer  to  the  pay  rolls. 

Time  of  contractor's  employees,  or  "force  atoount,"  should  be 
collected  on  separate  sheets  of  the  time  book,  using  occupation 
instead  of  names,  and  reporting  in  one  item  the  number  of  em- 
ployees of  same  occupation  engaged  upon  one  class  of  work. 

The  time  of  all  work  animals  should  be  reported  on  the  time 
book,  similarly  to  that  of  emplo3'ee3,  observing  the  following  rules: 

1.  Time  of  employee  and  of  animals  and  equipment  owned  and 
furnished  by  him    should  be  reported  as  one  item,  with  rate. 

2.  Time  of  animals  and  equipment  hired  separately  from  driver 
should  be  reported  separately,  using  name  of  owner  and  rate. 

3.  Time  of  animals  owned  by  the  Government  should  be 
reported  as  Government  animals,  working  or  idit,  according  to  the 
actual  facts,  each  day. 

The  method  of  obtaining  the  horse  day  cost  of  forage,  etc., 
requires  this  data,  and  is  explained  in  the  instructions  regarding 
corrals. 

The  time  book  used  on  the  works  is  the  original  book 
of  entry,  and  must  become  a  part  of  the  office  records. 
Should  the  project  be  entangled  at  any  time  in  litigation, 
this  book  would  be  needed  in  court.     A  transcript  of  any 


54 

kind  would  not  be  considered  good  evidence.  No  matter 
how  soiled  this  time  book  may  become,  the  rolls  should  be 
made  up  from  it.  The  use  of  a  transfer  book  to  transfer 
time  from  one  book  to  another  may  become  a  fruitful  source 
of  error,  and  presents  excellent  possibilities  to  a  dishonest 
man  to  pad  his  rolls.  Besides,  the  original  book  is  the  one 
the  engineer,  superintendent,  or  foreman  will  initial.  By 
following  the  instructions  governing  the  use  of  the  time 
book,  there  appears  to  be  no  good  reason  why  the  time- 
keeper should  have  to  work  overtime  in  order  to  keep  his  rec- 
ords up,  unless  it  be  for  a  few  hours  when  nearing  the  end  of 
the  month. 

The  timekeeper  does  not  have  to  know  all  the  numbers 
in  the  Project  Account  Number  Classification  Book.  He  is 
only  concerned  about  the  labor  items  on  the  particular 
feature  or  features  on  which  he  is  keeping  time.  He  should 
insert  in  his  time  book  binder  the  numbers  he  is  to  use. 
When  new  numbers  are  sent  him  from  the  office  from  time 
to  time,  or  old  numbers  done  away  with,  he  should  change 
his  list  accordingly.  The  timekeeper  will  soon  be  able  to 
learn  and  remember  his  numbers.  The  first  few  days  after 
the  system  has  been  installed,  he  v/ill,  of  course,  have 
difficulty  in  becoming  used  to  the  new  order  of  things,  but 
this  will  be  rapidly  overcome. 

The  timekeeper  need  not  concern  himself  with  the 
account  numbers  for  material,  supplies,  etc.,  unless  he  has 
other  duties  besides  that  of  a  timekeeper  to  attend  to.  In 
some  small  camps  a  timekeeper  may  make  out  requisitions 
for  engineers,  foremen,  etc.,  look  after  mess  houses,  and  the 
like,  but  unless  he  is  assigned  to  work  of  that  character  he 
will  handle  labor  account  numbers  only. 

All  account  numbers  for  supplies  and  materials  are 
handled  in  the  same  wav  as  labor  at  the  end  of  the  month, 
and  ultimately  are  collected,  as  is  all  cost  data,  by  the  use 


55 

of  the  general  classification  book. 

The  time  chargeable  to  a  distributing  corral  would  be 
for  the  foreman  and  his  assistants  only,  the  teamsters  and 
horses  being  charged  to  the  account  numbers  on  which  they 
are  working. 

On  some  projects  the  time  and  earnings  of  employees 
have  been  posted  at  the  end  of  the  month  prior  to  making  up 
the  rolls.    If  this  plan  is  an  aid  in  any  way,  it  may  be  done. 

Projects  requiring  badges  for  the  use  of  their  employees 
can  obtain  them  by  making  requisition  on  the  Chief  Engineer. 
A  uniform  badge  has  been  adopted. 

On  some  projects  hired  teams  are  classified  and  paid 
for  according  to  their  earning  capacity.  This  is  a  good  plan, 
as  it  not  only  insures  the  Government  against  employing, 
fattening,  and  strengthening  animals  in  a  poor  or  almost  un- 
serviceable condition — only  to  have  them  taken  away  when 
of  most  use — but  generally  raises  the  standard  of  animals 
used  in  a  particular  locality. 

PAY  ROLLS. 

The  pay  roll  clerk  should  handle  all  personal  records, 
such  as  papers  relating  to  appointments,  applications  for  em- 
ployment, transfers  of  employees,  contracts  with  employees, 
etc.,  and  should  check  up  service  travel  and  field  expense 
accounts. 

When  contracts  are  made  for  the  hire  of  many  teams  or 
wagons,  at  the  same  rate  per  month,  and  when  the  language 
used  in  the  contracts  covering  them  is  practically  the  same, 
time  may  be  saved  by  mimeographing  a  number  of  these 
forms,  leaving  names,  dates,  etc.,  to  be  filled  in  later. 

On  projects  where  mess  houses  and  mercantile  stores 
are  operated,  or  where  deductions  are  made  for  badges, 
board,  hospital,  rent,  etc.,  the  pay  roll  clerk  should  keep  the 
employees'   ledger  card,   and    from   the  information   shown 


56 

thereon  make  the  necessary  deductions  on  the  rolls  while 
making  them  up. 

A  few  days  prior  to  the  end  of  the  month,  pa\'  roll  forms 
should  be  sent  out  to  the  engineers,  foremen,  and  others. 
These  should  be  signed  (in  triplicate)  by  all  employees  and 
mailed  at  once  to  the  project  office,  together  with  time  books. 
Immediately  on  the  receipt  of  signed  pay  rolls  and  time 
books,  the  latter  should  be  checked  by  the  pay  roll  clerk  and 
the  rolls  made  up.  Should  any  errors  be  found  in  the  calcu- 
lations made  in  the  time  books,  such  errors,  and  the  recapitu- 
lations including  them,  should  be  corrected  before  making  up 
the  rolls  or  delivering  the  time  books  to  the  bookkeeper.  A 
wide  carriage  typewriting  machine  can  be  used  in  making  up 
the  rolls,  and  with  the  use  of  carbon  paper  all  three  copies 
may  be  made  at  once,  thus  saving  the  time  and  labor  incident 
to  copying  them  by  hand.  After  the  rolls  have  been  made  up 
and  checked,  charge  sheets  covering  their  distribution  should 
be  filled  in  and  attached,  charge  sheet  distribution  stamped 
and  filled  in  on  their  backs,  and  the  pay  rolls  ruled  up  to 
prevent  the  addition  of  new  names. 

All  pay  rolls,  upon  their  completion,  should  be  checked 
and  approved  by  the  engineers,  superintendents,  foremen, 
and  others  who  are  responsible  for  their  correctness. 

Upon  the  return  of  the  pay  rolls  to  the  office,  they 
should  be  checked  on  the  ordinary  service  card,  in  order  to 
prevent  duplications,  and  then  given  to  the  bookkeeper  to 
be  entered  in  the  voucher  register. 

When  a  project  has  a  large  number  of  employees  on  its 
rolls  it  would  be  well  to  make  one  roll  cover  them  all,  con- 
solidating into  one  voucher  as  many  of  the  pay  rolls  as 
practicable.  The  fewer  vouchers  made  up  tlie  better,  for 
when  it  is  remembered  how  many  employees  will  handle 
these  accounts  before  being  settled  at  the  Treasury  Depart- 
ment, leaving  out  of  consideration  the  manv  records  which 


57 

will  be  made  of  them  on  various  books  and  forn)s,  some  idea 
may  be  arrived  at  as  to  the  g^reat  amount  of  time  and  money 
that  will  be  saved  in  reducing  the  output  of  vouchers. 

It  would  be  well  to  settle  upon  some  day — say  the  loth 
of  a  month — for  a  regular  pay  day.  Such  a  plail  would  tend 
to  prevent  employees  from  importuning  the  office  to  pay 
them  off  before  that  date,  and  generally,  if  it  is  clearly 
understood  that  no  employee  will  be  paid  between  the  last  of 
the  month  and  the  loth  of  the  succeeding  month,  unless 
discharged,  those  who  do  not  wish  to  work  during  all  of 
these  ten  days  could  be  placed  on  a  separate  roll  or  sent  to 
the  office  with  a  time  check  to  be  paid  on"  an  open  roll. 

All  three  copies  of  the  pay  roll  should  be  given  to  the 
special  fiscal  agent  for  payment. 

When  practicable,  it  would  be  well  for  the  project 
engineer  to  instruct  the  pay  roll  clerk  to  personally  deliver 
checks  to  employees  on  the  works  from  time  to  time,  and  to 
change  the  clerks  making  such  delivery  occasionally. 

On  many  projects,  where  the  men  are  leaving  the  works 
from  time  to  time,  and  given  Memo,  of  Time  Accounts  for 
payment  at  the  project  olifice,  an  open  roll  for  the  proper 
handling  of  such  cases  should  be  carried.  A  slip  showing 
the  total  of  this  roll  at  the  end  of  each  day's  business  -ihculd 
be  given  by  the  pay  roll  clerk  to  the  special  fiscal  agent,  in 
order  that  he  may  balance  his  accounts  every  day.  As  time 
checks  come  into  the  ofifice,  they  should  be  pinned  to  the 
open  roll  and  filed  with  it  when  completed. 

FORMS. 

The  following  forms,  rubber  stamps,  etc.,  are  used  by 
the  pay  roll  clerk  and  others  : 

Application    for    cuiployuicwt,    registered    position     (Form 
7-563) — Instructions  on  back. 


58 

Reference  letter  {Form  7-569) — Self-explanatory. 

Contract  of  employment  in  registered  position  {Form  7-564) 
— Self-explanatory. 

Memorandum  of  employment  {Form  9-568) — Instructions 
on  back. 

Transfer  of  employee  {Form  9-507) — Self-explanatory. 

Memorandum  of  time  account  {Form  7-529) — Self-explan- 
atory. 

Employment  or  discharge  order  {Form  7-596) — Instructions 
as  follows : 

In  order  that  an  emploj'ce  may  obtain  a  limited  amount  of 
credit  at  the  project  mess  house  or  mercantile  ^tore,  or  that  he 
may  be  assigned  to  sleeping  quarters,  or  in  ca«es  where  the  time- 
keeper is  not  readily  accessiblt  It  the  engineer,  superintendent,  or 
foreman,  this  order  should  be  made  out  by  cne  of  the  oflticers 
mentioned,  immediately  upon  the  acceptance  of  service  by  the  em- 
ployee. 

Engineers,  superintendents,  or  foremen  should  fill  in  the  spaces 
in  the  lieading  of  the  order  for  "Project,"  "Feature,"  and  "Name  of 
Employee"  The  project  chief  clerk  will  later  cause  to  be  inserted 
"Timekeeper  No."  or  name  and  "Employee's  Badge  No." 

1.  Order  for  Employment  Brief. 

When  the  services  of  an  applicant  for  employment  have  been 
accepted,  the  engineer,  superintendent,  or  foreman  will  fill  in  all  the 
spaces  under  this  heading,  and  after  signing  his  name,  give  the  order 
to  the  prospective  'employee  and  send  him  to  the  project  chief  clerk, 
when  that  officer  will  take  off  such  information  as  he  may  need  for 
his  records,  sign  his  rtame  to  the  order,  and  issue  to  the  employee 
a  weekly  meal  ticket,  which  should  be  stamped  "Not  good  for  more 
than  ....  meals  unless  indorsed  by  timekeeper.'  The  number  of 
meals — say  three  or  more — can  then  be  filled  in.  The  chief  clerk 
should  also  issue  to  the  man  a  badge  Cshould  the  project  use  them), 
assign  the  man  to  sleeping  quarters,  and  after  filling  in  the  number  or 
name  of  the  timekeeper,  send  the  employee  to  that  officer,  in  order 
that  his  name  may  be  placed  on  the  time  book.  The  timekeeper  will 
place  the  employee's  name  on  the  time  book,  sign  his  name  to  the 
order,  and  return  it  to  the  office. 

2.  Change  of  Rate  Brief. 

3.  Overtime  Pay  Brief. 


59 

Under  these  headings  the  same  course  slicuild  he  pursued  as 
under  i,  Order  for  Emplojment  Brief,  except  that  the  project 
■office  will  not  need  to  issue  a  new  meal  ticket,  or  badge,  or  assign 
the  employee  to  quarters. 

4.     Discharge  slip. 

Under  this  heading?  the  same  general  instructions  should  he 
carried  out  as  outlined  in  i.  2,  and  3,  except  chat  the  former 
employee  should  go  first  to  the  timekeeper  with  the  order,  and  who 
will  make  cut  the  necessary  time  check,  giving  same  to  the  man 
and  taking  up  the  order  for  discharge  after  affixing  his  name  to  the 
same.  The  discharged  employee  should  then  go  to  the  project  office, 
where  he  will  be  paid  -off  on  his  limt  check,  less  any  deductions 
'for  meals,  hospitals,  etc.  The  timekeeper  should  return  the  order 
to  the  office. 

As  many  of  these  orders  may  be  made  out  as  may  be  required 
by  using  carbon  paper,  hut  it  is  not  believed  that  more  than  one 
copy  will  be  required.  The  office  should  file  the  order  for  future 
reference. 

Subsistence  pay  roll  voucher  {Form  9-554) — Self-explan- 
atory. 

Subsistence  pay  roll  I'Oucher  (Form  9-554^^) — Self-explan- 
atory. 

Pay  roll  subvoucJier,  A  {Form  7-538) — Instructions  on  back. 

Pay  roll  subvoucher,  B  {Form  9-539) — Instructions  on  back. 

Serrice  7'Oucher  {Form  9-552) — Self-explanatory. 

Charge  sheet  for  Washington  office  {Form  7-501) — Instruc- 
tions on  back. 

Charge  sheet  for  Washington  office  {Form  9-502) — Instruc- 
tions on  back. 

Distribution  of  charges  {Form  9-503) — Self-explanatory. 

Transfer  sheet  for  W'ashington  office  {Form  9-504) — In- 
structions on  back. 

Debit  notice  {Form  9-505) — Self-explanatory. 

Credit  notice  {Form  9-506) — Self-explanatory. 

Charge  sheet  distribution  stamp — Instructions  as  follows : 

All  project  offices  should  keep  duplicates  or  other  complete 
record  of  the  charge  sheets  sent  to  the  Chief  Engineer's  office.  This 


60 

should  be  done  until  the  use  of  the  charge  sheet  is  discontinued, 
which  is  under  advisement. 

The  voucher  register  is  provided  with  a  column  ruled  for  the 
entering  of  the  charge  sheet  distribution,  and  in  order  to  save 
space,  the  letters  A  to  I,  inclusive,  are  used  tor  the  secondary 
charge,  while  the  numbers  i  to-  9 ,  inclusive,  are  set  apart  for 
tertiary  charges. 

After  a  voucher  has  been  entered  in  the  register,  its  charge 
sheet  distribution  may  be  shown  on  the  voucher  itself  by  placing 
the  impression  of  this  stamp  on  the  back  of  the  office  copy  and 
filling  in  the  amounts  with  pen  or  pencil.  This  obviates  the  necessity 
for  making  out  the  charge  sheet  in  duplicate  and  filling  up  the  files 
with  an  unnecessarily  large  number  of  papers.  Later,  should 
occasion  require,  the  information  may  be  readily  referred  to 
without  necv^ssitating  the  opening  of  the  voucher  to  consult  the 
charge  sheet." 

The  use  of  this  stamp  is  not  obhgatory,  and  those  who 
prefer  making  out  the  duphcate  charge  sheet  may  do  so. 

Employees'  ledger  card  (Form  7-603) — Instructions  on  back. 

Meal  card — Self-explanatory. 

Service  card — Self-explanatory. 

Purchase  voucher,  ruled  (Fonii  7-555) — Instructions  on 
back. 

Pitrchase  voucher,  unruled  {Form  7-555) — Instructions  on 
back. 

Purchase  voucher,  ruled  {Form  9-556) — Instructions  on 
back. 

Purchase  voucher,  uiiniled  {Form  9-556) — Instructions  on 
back. 

Service,  per  diem,  and  expense  voucher  {Form  9-550) — In- 
structions on  back. 

Travel  voucher  {Form  7-551) — Instructions  on  back. 

Travel  voucher,  continue  sheet  {Form  9-55i«-) — Self-explan- 
atory. 

Suhvoncher  {Form  9-019;') — Instritctions  on  back  of  book. 


61 


SHOP  ORDERS. 

The  distribution  of  shop  work  on  an  equitable  basis  is 
most  important  because  if  the  work  performed  by  the  shops 
is  not  distributed,  costs  of  departments  affected  by  shop  work 
cannot  be  compared,  and  there  may  be  serious  trouble  if  esti- 
mates have  been  based  on  a  cost  in  which  such  an  expense 
formed  a  part.  When  practicable,  a  clerk  should  be  installed 
in  each  shop,  if  the  project  operates  more  than  one,  but 
where  these  are  not  separated  from  each  other  by  any  great 
distance,  one  clerk  may  attend  to  the  duties  of  all,  provided 
the  work  is  not  too  great. 

Instructions  concerning  the  use  of  shop  orders  (form 
7-598)  are  printed  on  their  backs. 

Each  shop  should  keep  an  inventory  account  by  means 
of  bin  cards,  and  other  records  described  under  the  head- 
ing, "Storehouses,"  and  whenever  material  is  issued 
from  a  particular  shop,  that  shop  should  receive  credit  for 
the  amount  used,  the  debit  being  carried  to  the  proper 
account  number.  Each  shop  should  make  requisition  on  the 
storehouse  for  its  material  or  supplies  in  precisely  the  same 
manner  as  any  other  project  feature,  but  when  practicable 
requisition  should  only  be  made  to  meet  the  demands  of  each 
order.  Such  material  would  then  be  charged  directly  from 
the  storehouse  to  the  correct  account  number,  which  the 
shop  clerk  supplies.  This  would  tend  to  eliminate  unnecessary 
accounting  and  largely  avoid  the  possibility  of  a  duplicate 
charge.  When  material  is  so  charged  a  cross-check  should 
be  given,  that  is,  the  shop  order  number  should  be  placed  on 
the  requisition,  and  the  requisition  number,  with  the  date 
and  description  of  the  material,  should  be  placed  on  the 
shop  order,  thereby  enabling  the  shop  clerk  to  ascertain  the 
exact  cost  of  each  piece  of  work  at  any  time.  Should  only  a 
small  amount  of  storehouse  material  be  wanted,  for  instance, 


62 

a  few  feet  of  steel  from  a  bar  of  steel  of  standard  length,  a 
requisition  should  be  passed  to  the  storehouse  for  the  entire 
bar,  and  a  direct  charge  made  to  the  shop  material  account. 
Such  material  should  be  taken  up  as  a  part  of  the  shop 
inventory  and  charged  out  as  used. 

Each  employee  in  every  shop  should  be  required  to  keep 
a  daily  record  of  the  material  used  and  time  worked  on  each 
shop  order  number — Shop  Order  Card  (form  7-614).  These 
cards  should  be  deposited  in  a  box  at  the  end  of  each 
day's  work,  collected  by  the  shop  foreman  and  turned  over 
to  the  shop  clerk,  who  will  insert  prices  and  transfer  the 
information  to  the  several  office  copies  of  the  shop  order 
and  from  the  shop  orders  to  a  special  ruled  journal,  debiting 
the  particular  account  number  to  which  the  order  should  be 
charged  and  crediting  each  shop  with  material  and  labor. 

On  some  small  projects,  where  but  little  shop  order 
work  is  done,  the  use  of  the  shop  order  card  and  journal  may 
be  dispensed  with.  When  much  of  this  class  of  work  is  done 
it  will  generally  be  found  that  the  use  of  both  card  and 
journal  is  necessary,  as  to  take  the  monthly  distribution  from 
the  shop  orders  to  the  General  Classification  Book  would  be 
more  difficult,  especially  when  there  are  several  hundred 
orders  to  be  distributed,  some  of  which  may  be  several 
months  old,  and  there  would  always  be  the  possibility  of 
errors  having  been  made  in  dates,  total  time  of  shop  work 
and  shop  material.  By  using  the  journal  it  will  be  possible 
at  any  time  to  tell  the  total  shop  charge  of  labor  and  material 
and  at  the  end  of  the  month  it  will  only  be  necessary  to  copy 
the  amounts  from  the  journal  to  the  general  classification 
book  under  the  proper  account  numbers.  Apportiomnents 
should  then  be  made  for  shop  supervision,  power,  wood,  shop 
expense,  use  of  tools,  etc.,  and  the  monthly  shop  accounts 
closed.  The  total  shop  labor  should  check  exactly  with  the 
time  shown  by  the  timekeeper  in  his  time  bpoks. 


63 

The  time  of  the  shop  clerk  and  shop  foreman  can  not 
readily  be  distributed  on  the  shop  orders,  so  the  proportionate 
time  of  each  should  be  noted  on  the  top  of  the  general  classi- 
fication book  when  distributing-  shop  orders. 

The  percentage  of  shop  expense  to  be  added  to  shop 
orders  may  be  found  by  adding  the  cost  of  labor  and  material 
on  all  shop  orders,  and  dividing  it  into  the  total  shop  expense. 
Add  the  percentage  on  each  shop  order  to  the  labor  and 
material  costs  entering  into  same,  and  in  this  manner  absorb 
the  shop  job  order  expense  not  charged  direct. 

The  total  expense  of  each  shop  should  be  credited  to 
such  shops  in  the  cost  ledger,  and  its  component  parts  debited 
to  the  different  accounts  in  the  cost  ledger. 

The  shop  clerk  should  have  his  stock  checked  up  every 
few  months  and  adjustment  made. 

•       DISTRIBUTION  OF  POWER. 

In  distributing  power  charges  over  the  various  shop 
orders  and  ])roject  features,  it  would  be  well  to  consult  the 
engineers  of  the  power  plaj^t  as  to  the  number  of  horsepower 
hours  generated  each  day,  the  number  of  horsepower  hours 
furnished  to  each  feature,  and  the  amount  of  the  friction  load 
for  the  same  time.  The  total  of  the  friction  load  should 
then  be  distributed  to  the  project  features,  by  percentages, 
showing  the  total  number  of  horsepower  hours  used  daily, 
including  the  friction  load.  Multiply  this  sum  by  the  number 
of  days  in  the  month  to  obtain  the  total  number  of  horse- 
power hours  used  during  the  month  for  each  feature.  The 
total  cost  of  operating  the  plant  for  the  month,  divided  by 
the  total  number  of  horsepower  hours  generated  during  the 
month,  should  show  the  cost  per  horsepower  hour,  which, 
multiplied  by  the  number  of  horsepower  hours  of  each 
feature,  should  give  the  amount  chargeable  to  eacii  feature 


64 

for  power — the  expense  for  power  being  absorbed  by  the 
features  using  it. 

THE  ACCOUNT  NUMBER  S^  STEM. 

This  system  is  known  in  one  form  or  another  to  every 
accountant  in  the  Service,  and  there  is  hardly  a  large  cor- 
poration, railroad,  or  manufacturing  concern  who  does  not 
make  it  a  basis  for  handling  its  costs  and  bookkeeping 
records.  It  commends  itself  to  the  general  public  on  account 
of  the  small  expense  incident  to  its  installation  and  operation, 
because  of  the  small  number  of  employees  necessary  to  carry 
it  on,  and  the  facility  with  which  costs  can  be  collected  and 
distributed  through  a  simple  process — the  use  of  general 
classification  book. 

The  system  at  first  did  not  seem  to  be  applicable  to  the 
work  of  the  Reclamation  Service,  .because  the  work  is  so 
diversified,  the  projects  are  so  very  far  apart,  not  only  from 
each  other,  but  from  the  office  of  its  Chief  Engineer,  so  many 
different  kinds  of  plants  are  operated,  and  such  varied 
business  operations  are  carried. 

The  Reclamation  Service  is  commencing  new  works 
almost  every  day,  and  it  seemed  to  be  hopeless  to  attempt  to 
get  out  certain  forms  providing  for  the  use  of  certain  account 
numbers,  only  to  have  them  thrown  aside  and  reprinted  at 
frequent  intervals  to  meet  changing  conditions.  However, 
this  trouble  was  overcome  by  the  use  of  the  account  number 
classification  book,  which  simply  requires  the  addition  of  a 
few  more  numbers  when  new  work  is  commenced,  the 
addition  of  which  will  not  in  any  way  affect  any  book  or 
record  in  use  save  the  account  number  classification  book 
itself.  When  new  work  is  about  to  begin,  the  chief  clerk  of 
an  office  merely  sends  to  each  engineer,  superintendent,  fore- 
man, or  timekeeper  for  insertion  in  their  notebooks,  the  list 


65 

of  account  numbers  and  classification  to  be  used,  and  adds  a 
copy  to  the  list  in  the  account  number  classification  book 
kept  in  the  office.  This  should  be  done  before  the  work  is 
begun ;  however,  the  project  engineer  should  give  his  cost 
keeper  abundant  notice  as  to  the  costs  he  desires  kept  on 
that  work,  leaving  blanks  for  the  addition  of  new  numbers, 
should  additional  data  be  required.  The  system  is  merely 
to  give  to  certain  accounts  entering  into  the  total  cost  of  a 
feature  numbers  in  addition  to  names,  that  they  may  be 
readily  brought  together  in  one  book  and  distributed  at  once, 
so  that  the  project  books  may  be  closed  within  a  day  or  two 
after  the  first  of  the  month,  rather  than  that  the  office  force 
should  be  working  nights  until  near  the  middle  of  the  suc- 
ceeding month  before  the  books  can  be  balanced.  The 
system  at  first  may  seem  complicated,  but  after  it  has  been 
used  a  few  days  its  simplicity  and  elasticity  will  be  appre- 
ciated. On  the  four  projects  of  the  Service  where  it  has 
been  installed  there  is  no  disposition  or  wish  lo  return  to 
the  old  order  of  things.  Instead  of  the  large  number  of 
awkward  and  cumbersome  sheets  required  to  distribute  costs, 
the  entire  transaction  requires  but  a  few  minutes,  and  the 
use  of  a  few  sheets  in  a  small  book. 

Another  good  feature  in  regard  to  the  system  is  that 
busy  engineers  who  have  no  time  or  desire  to  master  the 
theory  and  practice  of  bookkeeping  can  understand  this 
system  at  once,  note  comparisons  from  month  to  month,  and 
are  placed  in  a  position  to  know  each  day  what  the  several 
operations  over  which  they  have  supervision  are  costing  the 
Service    and  be  at  all  times  masters  of  the  situation. 

The  first  step  in  installing  this  scheme  is  co-operation ; 
after  that  the  balance  is  easy. 

Go  over  all  live  feature  and  other  accounts  and  assign 
numbers  to  each  one.  Begin  with  number  one  always,  and 
end  the  classification  with  a  number  ending  in  nine,  so  that 


66 

later  accounts  ma}'  be  readily  found  in  the  general  classifi- 
cation book.  Leave  plenty  of  numbers  for  the  addition  of 
new  accounts,  for  after  the  engineer  commences  to  obtain 
reliable  cost  figures  he  is  sure  to  want  his  costs  in  greater 
detail,  which  will  require  the  filling  in  of  blank  spaces  left 
in  the  account  number  classification  book.  The  engineer  may 
say  that  he  will  be  satisfied  if  he  can  obtain  certain  data,  but 
be.  on  the  safe  side  and  leave  the  numbers.  One  or  more  of 
them  will  surely  be  needed. 

Do  not  make  the  mistake  of  beginning  with  large 
numbers.    They  are  cumbersome. 

Do  not  use  alphabetical  prefixes  if  it  can  possibly  be 
avoided.  They  are  sure  to  lead  to  much  confusion  in  dis- 
tributing costs  later. 

Do  not  subdivide  costs  to  the  extent  that  it  will  take 
many  timekeepers  to  collect  the  data  wanted.  If  this  is  done 
the  data  will  prove  worthless  when  accumulated. 

When  a  new  account  is  started,  begin  it  with  the  number 
immediately  following  the  last  number  used  on  the  last 
account  in  the  account  number  classification  book  and  in  the 
cost  ledger. 

Open  the  cost  ledger  and  arrange  accounts  as  per  the 
account  number  classification  book. 

At  the  end  of  the  month  post  to  the  cost  ledger  from 
the  general  classification  book. 

Close  your  accounts  in  your  old  books  and  bring  the 
balances  forward  to  the  cost  and  general  ledgers. 

If  the  distribution  of  all  costs  or  numbers  registered  on 
a  voucher  register  is  not  complete,  it  should  be  made  so 
at  once,  even  if  an  extra  force  of  men  is  required  to  accom- 
plish the  work.  The  system  may  be  installed  while  this  work 
is  being  done,  and  the  balances  brought  forward  when  the 
work  has  been  completed. 

Do  not  start  the  system  in  the  middle  of  the  month.     Be 


67 

sure  it  is  well  understood  first,  and  send  out  explicit  instruc- 
tions to  all  concerned  that  there  may  be  no  misunder- 
standing of  orders. 

Explain  to  storehouse  clerks,  timekeepers,  and  others 
that  there  is  no  necessity  for  their  knowing  all  the  account 
numbers  in  the  account  number  classification  book — that 
they  are  concerned  only  in  those  that  they  are  to  use  on  their 
particular  features. 

In  making  up  the  local  account  number  classification 
book,  do  not  have  it  printed — a  mimeographed  copy  is 
sufficient.  It  will  have  to  be  changed  too  often  to  admit  of 
being  printed. 

Do  not  be  discouraged  if  there  is  trouble  in  getting  the 
system  installed  during  the  first  few  days  until  the  men  get 
used  to  it.    Some  friction  is  naturally  expected  at  first. 

If  there  is  lack  of  co-operation  the  project  engineer 
should  support  his  subordinates  in  asking  for  necessary 
information  to  insure  a  complete  record  of  all  transactions 
and  the  results  obtained.  In  this  way  only  can  the  accounting 
system  be  made  a  success. 

Send  copies  of  the  account  number  classification  book 
to  all  who  may  be  obliged  to  consult  it. 

Send  three  copies  of  the  book  to  the  office  of  the  Chief 
Engineer — one  for  his  information  and  two  for  the  committee 
on  uniform  accounting. 

There  is  no  objection  to  inserting  explanatory  notes  or 
instructions  in  the  account  number  classification  book.  On 
the  contrary,  it  is  a  good  plan. 

Number  the  pages  in  the  account  number  classification 
book  and  index  the  book. 

One  of  the  chief  features  of  the  account  number  system 
is  that  it  not  only  furnishes  correct  costs  inexpensively,  but 
enables  these  costs  to  be  collected  quickly.  To  accomplish 
the  latter,  there  should  be  turned  in  promptly  at  the  end  of 


68 

each  day  or  month  all  receipts  for  material  and  supplies 
delivered  on  the  project  during  a  given  month,  reports  of  all 
materials  and  supplies  produced,  from  which  deliveries  have 
been  made  for  use  on  the  project,  reports  of  shop  work,  and 
all  other  reports  of  departments  whose  work  has  entered  into 
the  monthly  costs,  and  which  are  taken  up  on  the  books  and 
accounted  for.  This  being  the  case,  do  not  hesitate  to  use 
the  telephone,  and  insist  that  timekeepers,  storehouse  clerks, 
foremen,  and  all  others  concerned  send  in  their  statements 
and  reports  immediately. 

This  system  contemplates  that  cost  figures  and  book- 
keeping records  (which  are  one  and  the  same  thing)  be 
taken  at  one  and  the  same  time  in  order  to  save  both  time 
and  money,  and  at  the  same  time  that  a  close  check  be  kept 
on  all  accounts.  The  objection  has  been  made  that  men  who 
have  no  knowledge  of  accounting  methods  are  depended  on 
to  aid  in  collecting  the  data  for  the  books.  This  is  true,  but 
there  are  only  a  few  instances  where  the  records  have  been 
impaired  on  this  account,  and  if  a  mistake  be  made  in  the 
number  placed  on  a  rec^uisition,  it  is  soon  detected  in  the  of- 
fice or  by  the  foreman  or  other  person  against  whom  the 
erroneous  charge  is  made. 

A  few  of  the  accounts  shown  in  the  exhibit  of  the  ac- 
count number  classification  book  used  on  the  Salt  River, 
Yuma,  and  Carlsbad  projects  are  discussed  below. 

General  expense. — This  general  expense  should  include 
expenditures  of  a  general  nature  that  cannot  be  charged 
directly  to  any  other  account,  but  have  been  made  for  the 
benefit  of  the  entire  project.  If  any  item  appearing  in  this 
subdivision  can  be  applied  directly  to  any  other  subdivision 
or  account,  it  should  be  done. 

The  item  of  general  expense  is  used  at  the  office,  where 
the  office  pay  rolls  are  distributed.  Timekeepers  may  carry 
on   their   rolls   some   items  chargeable  to   general   expense 


69 

classification,  but  before  making  such  distribution  they 
should  receive  instruction  from  the  office.  The  general  ex- 
pense classification  should  be  used  by  all  branch  offices. 

Plant  accounts  or  producing  departments. — These 
accounts  should'  represent  the  cost  of  producing  a  given 
product  or  article  only,  and  would  include  every  item  of 
necessary  expense,  including  labor,  material,  repairs,  depre- 
ciation on  machinery,  etc.  All  expenditures  for  additions 
to  a  plant,  however,  would  not  be  included  in  such  a  subdi- 
vision and  would  be  added  to  the  cost  account  covering  the 
original  plant  building  expense.  These  producing  plants 
would  probably  be  treated  as  auxiliaries  to  the  storehouse, 
and  requisitions  showing  deliveries  made  to  various  project 
features  would  ultimately  find  their  way  to  the  project  office. 
They  should  also  send  in  a  report  promptly  at  the  end  of  each 
month's  business,  using  form  7-601,  Statement  of  Issues 
from  Inventory  Account.  The  deliveries  should  be  credited 
to  an  inventory  account  for  the  particular  product  being 
manufactured. 

Storehouse  account. — Such  an  account  should  represent 
the  cost  of  handling  supplies  in  the  storehouse,  including  the 
pay  of  clerks  and  other  help,  office  expenses,  repairs  to 
building,  etc.  It  should  be  closed  at  the  end  of  the  month 
into  such  an  account  as  Storehouse  Freight  and  Handling 
Account,  kept  in  the  general  ledger.  The  manner  of  handling- 
storehouse  issues  and  receipts  have  been  discussed  under 
other  captions.  The  storehouse  inventory  account  should 
be  charged  with  the  invoice  price  paid.  The  issues  from 
the  storehouse  arc  made  at  the  invoice  price  charged,  plus 
any  freight  and  handling  which  can  be  made  at  the  time.  As 
some  projects  may  not  be  able  to  distribute  freight  charges 
when  issues  are  made  from  the  storehouse,  and  as  the 
various  cost  accounts  should  carry  the  cost  of  freight  and 
handling,  and  of  storehouse  issues,  an  account  for  freight 


70 

and  handling  would  be  necessary  to  take  up  and  absorb 
on  as  equitable  a  basis  as  possible,  by  distribution,  this 
cost.  Instructions  might  therefore  be  issued  that  a  certain 
percentage  be  added  to  the  storehouse  issues  at  the  end  of  the 
month,  to  cover  the  cost  of  freight  and  handling,  and  this 
amount  credited  to  the  storehouse  freight  and  handling 
account  in  the  general  ledger.  As  this  account  is  charged 
with  the  freight  paid  from  time  to  time,  together  with  the 
monthly  cost  of  operating  the  storehouse,  the  percentage 
might  be  increased  or  decreased  each  month,  so  as  to 
completely  absorb  this  expense. 

Subsistence  and  corrals. — These  accounts  should  be  kept 
with  each  mess  house  or  corral,  the  basis  of  each  account 
being  with  an  inventory  account.  At  the  end  of  a  month 
an  inventory  should  be  taken  and  the  inventory  account 
credited,  the  increase  or  decrease  being  taken  up  on  the  profit 
and  loss  account  in  the  general  ledger.  These  accounts 
should  be  closed  out  each  month  by  distributing  the  charges 
over  the  features,  according  to  the  number  of  men  fed  during 
the  month. 

Gaging  station.- — These  accounts  are  closed  monthly, 
according  to  the  report  of  work  done  during  a  month. 

Cableways. — These  accounts  show  the  cost  of  operating 
cableways,  and  are  closed  against  the  particular  construction 
account  on  which  the  cableway  is  used. 

Waterworks. — These  accounts  show  the  cost  of  main- 
taining the  waterworks  of  a  project,  and  the  charges  should 
be  distributed  monthly  over  the  departments  using  water. 

Fire  protection. — These  accounts  should  show  the  cost 
of  fire  protection,  and  should  be  closed  out  monthly  by  dis- 
tribution over  the  various  departments  on  about  the  same 
percentage  basis  as  general  expense. 

Surveys. — A  report  of  surveys  should  be  rendered  each 


71 

month,  and  the  cost  should  be  distributed  according  to  this 
report.     The  entire  account  should  be  closed  monthly. 

Sanitation  of  camps. — These  accounts  are  closed 
monthly,  according  to  the  various  features  affected. 

Inventory  accounts. — The  object  of  inventory  accounts 
has  been  explained  in  part  in  the  discussion  of  other  accounts, 
from  which  inventory  accounts  necessarily  originate.  These 
accounts  are  increased  or  decreased  as  desired.  Certain 
material  accounts  that  are  used  in  the  manufacture  of  articles 
produced,  or  partly  consumed  from  month  to  month,  can  be 
carried  under  one  caption — say  storehouse  for  instance — but 
this  should  not  generally  be  done,  because  the  more  individual 
inventory  accounts  carried  on  the  books  the  more  convenient 
it  will  be  to  check  each  particular  inventory,  the  status  of 
such  accounts  being  much  more  readily  brought  to  the  at- 
tention of  the  project  engineer  than  if  included  in  one  ac- 
count. If  it  is  desired  to  carry  but  one  account,  a  separate 
report  of  the  condition  of  these  inventory  accounts  should 
be  rendered  monthly  for  inspection  and  verification.  These 
accounts  should  be  charged  with  the  cost  of  production,  or 
with  the  actual  cost  of  purchases,  including  the  invoice  price 
and  cost  of  transportation  laid  down  at  a  particular  spot  from 
which  deliveries  to  the  various  parts  of  the  project  are  made. 
The  cost  of  delivering  from  an  inventory  location  -to  the 
project  feature  using  the  material  must  be  borne  by  that  par- 
ticular feature,  and  the  labor  of  transportation  should  be 
carefully  watched  and  distributed  by  the  timekeepers.  The 
cost  being  shown  in  the  ledger  of  production  or  purchases, 
the  amount  used  takes  the  value  basis  on  the  average  unit 
price,  as  shown  by  the  debit  side  of  the  account,  and  the 
balance  representing  the  inventory  on  hand  is  brought  down 
at  this  average  price.  To  the  balance  on  hand  on  the  first  of 
any  particular  month  should  be  added,  as  explained  above, 
the  cost  of  production  or  purchase.    These  purchases  should 


72 

appear  on  Form  7-601,  Statement,  issues  from  inventory  ac- 
count, as  rendered  by  the  producing  departments,  or  those 
in  charge  of  the  inventory  accounts. 

The  inventory  account  should,  of  course,  be  checked 
frequently  with  the  actual  material  on  hand.  When  the 
material  has  been  finally  disposed  of  and  a  balance  is  found 
to  remain  in  the  inventory  account,  adjustment  on  the  books 
should  be  promptly  made  to  close  it  out. 

Timekeeping. — The  work  of  timekeepers  will  not  be 
affected  in  handling  inventory  accounts,  but  there  may  be 
times  when  material,  considered  as  being  included  in  an 
inventory  account,  is  delivered  to  a  certain  point  which 
carries  with  it  a  particular  cost  up  to  that  point,  and  in  order 
to  have  this  material  reach  the  consuming  department  there 
must  be  an  expense  for  hauling,  etc.  Take,  for  example, 
wood  used  at  a  power  plant.  The  cost  of  the  wood  in  the 
inventory  account  would  cover  the  wood  as  it  is  delivered 
and  piled  in  the  yard.  The  cost  of  getting  it  to  the  power 
plant  would  be  chargeable  to  supplies — fuel  at  the  power 
plant,  because  the  wood  is  delivered  in  the  yard  at  a  fixed 
price ;  but  if  there  is  any  expense  for  labor  in  having  it 
delivered  at  the  yard  it  would  be  chargeable  to  inventory 
account. 

On  material  bought  and  delivered  at  a  certain  place 
there  should  be  added  the  additional  expense  of  moving  it 
to  the  point  of  consumption.  All  such  costs  are  chargeable 
to  inventory  accounts. 

As  soon  as  requisitions  from  the  storehouse  are  received 
by  the  office  they  should  be  entered  in  the  general  classifica- 
tion book,  and  when  all  have  been  turned  in  for  the  month 
the  total  of  each  account  number  is  arrived  at  and  listed  on 
this  form.  The  amounts  are  posted  in  the  cost  and  general 
ledgers,  except  that  the  total  is  credited  to  storehouse  in- 
ventory account. 


73 


CONTROLLING  ACCOUNTS. 

Controlling  accounts  are  accounts  carried  in  the  general 
ledger,  that  represent  the  summation  of  the  detailed  accounts, 
the  aggregate  of  which  must  agree  with  the  amounts  repre- 
sented in  the  balances  of  such  controlling  accounts. 

It  would  be  impossible  for  any  one  to  state  definitely 
just  what  controlling  accounts  should  be  opened  on  each 
project,  that  being  left  largely  to  the  local  accountants,  but 
in  the  main  they  should  be  vouchers  paid,  direct  charges, 
labor,  miscellaneous  freight,  inventories  of  various  kinds, 
profit  and  loss — board,  profit  and  loss — mercantile  stores, 
profit  and  loss — hospital,  profit  and  loss — rent,  cost  ledger, 
unpaid  accounts,  and  equipment.  {Sec  Balance  sheets  of 
Salt  River  and  Carlsbad  projects.) 

The  principal  reason  for  carrying  but  one  controlling- 
cost  ledger  account  in  the  general  ledger  is  because  of  its 
elasticity,  and  the  convenience  and  promptness  with  which 
the  balance  of  the  cost  ledger  may  be  found. 

An  inventory-equipment  account  should  also  be  opened. 
This  account  should  be  charged  with  all  equipment  as  it 
comes  to  the  project.  As  equipment  is  issued  to  each  feature 
of  the  project,  the  account  should  be  credited  and  the 
feature  debited.  When  the  feature  is  complete,  an  appraise- 
ment of  the  valuation  of  the  equipment,  as  turned  over  to 
other  features,  or  returned  to  the  storehouse,  should  be  made 
by  responsible  persons,  the  dififerences'  between  first  cost  and 
appraised  valuation  being  debited  to  the  particular  feature  on 
which  the  equipment  has  deteriorated  or  depreciated,  and  the 
appraised  price  going  back  to  the  debit  of  the  equipment 
account.  This  account  would  aid  greatly  in  solving  the 
trouble  of  depreciation,  and  do  away  with  almost  all  arbi- 
trary depreciation  charges. 

In  order  to  obtain  correct  costs  on  projects  on  which 


74 

Government  teams  and  wagons  are  used,  care  should  be 
taken  that  a  fixed  price — such  a  price  as  would  usually  be 
paid  for  the  hire  of  teams  and  wagons  in  the  vicinity — be 
charged  to  this  feature  for  the  rent  or  hire  of  such  equipment. 
Should  the '  price  for  feeding  and  shoeing  Government 
animals,  and  repairs  to  wagons,  be  the  only  charge  to  the 
feature,  the  cost  as  compared  to  the  feature  operating  with 
hired  animals  and  wagons  would  be  thrown  out  of  all  pro- 
portion. The  equipment  account  could  take  care  of  such 
charges. 

The  subject  of  depreciation  is  a  difficult  matter  to 
handle,  especially  so  far  as  the  Reclamation  Service  is 
concerned.  The  Service  is  not  manufacturing  commodities 
for  sale ;  but  it  is  necessary,  so  far  as  it  is  practicable,  to 
obtain  a  fair  figure  as  to  what  the  charge  for  depreciation 
of  the  machinery  manufacturing  such  commodities  might 
be.  The  conditions  are  peculiar,  inasmuch  as  machinery  is 
bought  for  the  purpose  of  producing  certain  articles,  power, 
or  product,  necessary  to  the  construction  of  a  certain  project, 
and  to  have  bought  either  one  of  these  in  the  open  market 
might,  and  probably  would,  have  meant  the  expenditure  of 
a  much  larger  sum  than  the  entire  cost  of  the  plant,  plus 
running  expenses,  maintenance,  etc.  For  this  reason,  it  is 
difficult  to  determine  just  what  depreciation  charges  should 
be.  A  manufacturer  who  makes  the  same  article  for  sale 
day  after  day,  and  who  uses  the  same  class  of  machinery 
year  after  year,  may,  and  must,  arrive  at  some  conclusion  as 
to  what  his  plant  is  losing  in  earning  power  daily,  for  if  he 
does  not,  he  will  eventually — because  of  keen  competition, 
or  for  other  reason — be  forced  out  of  business ;  but,  where  a 
plant  is  run  for  a  year  or  so,  to  aid  in  the  completion  of  a 
certain  project,  and  where  that  same  plant,  by  reason  of 
certain  physical  or  other  conditions,  may  not  be  worth  the 
money  to  move  it  to  some  other  point  for  sale   (conditions 


75 

havinj^  clianged  in  the  iiK'antinie)  the  stibject  of  depreciation 
is  a  most  difficult  one  for  the  Reclamation  Service  to  handle. 
For  the  reasons  set  forth  above,  the  equipment  account  may 
be  most  helpful,  but  it  is  urged  that  the  accountants  endeavor 
to  obtain  some  report  from  those  handling  machinery  and 
other  mechanical  devices,  whereby  some  equitable  and 
uniform  Ijasis  for  figuring  depreciation  may  ultimately  be 
arrived  at. 

Whenever  any  piece  of  equipment  is  used  continuously 
and  solely  on  one  feature  of  the  project  the  cost  of  such 
equipment  may  be  charged  direct  to  that  feature,  a  sub- 
sequent credit  to  be  made  for  the  remaining  value  of  the 
article  of  equipment  when  it  is  transferred  to  other  work.  In 
such  cases  rei)airs  should  also  1)e  charged  directly  to  the 
feature  on  which  the  equipment  is  employed.  Examples :  An 
excavator  used  on  a  canal ;  drills  used  in  tunnel  heading ;  con- 
crete mixer  used  solely  on  one  structure. 

On  the  other  hand  whenever  equipment  is  used  irreg- 
ularly on  one  and  another  feature,  and  occasionally  on  oper- 
ations incidentally  but  not  directly  contributing  to  the  build- 
ing of  any  project  feature,  it  is  impracticable  to  make  direct 
charges  for  equipment  and  the  repairs  thereon.  For  such 
operations  there  must  be  an  operating  account  which  should 
be  charged  with  the  entire  expense  for  a  given  period, 
including  all  expense  for  labor,  supplies,  and  a  proper  pro- 
portion of  depreciation,  and  which  should  be  credited  with 
its  output  at  a  price  sufficient  to  absorb  the  entire  expense. 

The  form  given  below  is  offered  to  all  accountants  of 
the  Reclamation  Service  as  a  basis  for  collecting  data  that 
will  benefit  the  Service,  and  a  report  to  the  office  of  the  Chief 
Engineer  as  to  the  results  obtained  from  it  will  be 
appreciated. 


76 


Operating 
Statement. 
Department  of  the  Interior 
United  States  Reclamation  Service 

Project. 

Statement  of  Operations  of Feature  for  the  month  of 

,  190  . 

Value  of  inventory  of  materials,  supplies,  and 
of    completel}'    and    partly    manufactured 

stock  on  hand  at  end  of  last  month $ 

Charges  this  month  on  requisitions 

Charges  this  month  per  time  books,  etc 

Estimated  depreciation  this  month* 


Issues  this  month  on  requisitions 

Value  of  inventory  of  materials,  supplies,  and  of 
completely  and  partly  manufactured  stock  at 
end  of  this  month 


Total? 


*Depreciation  estimated  as  follows : 

Original  cost,  including  installation 

Estimated    cost    of    repairs    during    period    of 
service    


Total   cost 

Estim.ated  salvage  value  at  end  of  service. 

Estimated    depreciation , 

Estimated  period  of  operation    (months)  . . 
Estimated   monthly   depreciation. 


BOOKS  AND  FORMS  USED  IN  BOOKKEEPING. 

Voucher  register    {Form   7-607) — The   instructions   issued 
concerning  the  use  of  the  voucher  register  are  as  follows : 

The  voucher  register  should  be  used  for  recording  all  vouchers 
paid,  or  forv/arded  for  payment.  It  is  intended  that  the  voucher 
register,  cost  ledger,  summary  of  cost  ledger  accounts,  and  general 
ledger  (all  loose-leaf  forms)  will  be  kept  in  the  same  binder.  On 
some  large  projects  this  may  prove  to  be  impracticable,  in  which 
case  the  voucher  register  may  be  kept  in  a  separate  binder. 

Vouchers    should    be    taken    in    triplicate    on    ever}^    project,    two 
copies  being  for  the  special  fiscal  agent,  one  copy  remaining  in  the 


77 

project  office  files.  Vouchers  should  be  certified  by  the  local  ap- 
proving officers  (after  attaching  charge  sheet)  when  the  office 
copy  should  be  given  a  number,  charge  sheet  distribution  stamped 
and  filled  in  on  its  back,  and  registered  in  the  voucher  register. 
The  numbers  of  vouchers  shduld  run  consecutively.  All  three 
copies  of  the  vouchers  should  then  be  given  to  the  special  fiscal 
agent,  who  after  paying  the  account,  should  return  the  office  copy, 
placing  in  spaces  provided  for  that  purpose,  date  of  payment, 
amount  or  amounts  paid,  depository,  and  under  the  office  voucher 
number  his  own  number. 

The  space  for  "Project,"  "Folio  No.,"  and  "Alonlh"  should  be 
filled  in. 

The  date  refers  to  the  date  of  presentation  to  the  special  fiscal 
agent,  and  should  be  inserted  in  order  to  protect  the  chief  clerk, 
should  complaint  be  made  regarding  tardiness  in  making  payments. 

Fill  in  space  for  "Office  Voucher  No.,"  "Fiscal  Agent's  No.," 
"Favor  of,"  and  "Amount." 

The  column  "Explanation"  is  for  stating  the  character  of  the 
voucher  paid,  as  field  expenses,  team  hire,  pay  roll,  etc. 

"Direct  charges"  are  for  the  entry  of  such  vouchers  as  can  be 
charged  direct  to  a  particular  feature,  and  in  such  cases  both  the 
account  number  and  amount  should  be  filled  in.  The  column, 
"Labor"  is  for  the  entry  of  amounts  of  pay  rolls,  service  vouchers, 
etc.,  with  month  of  incurring  liability  and  amount. 

In  the  column  "Miscellaneous  Freight"  place  all  freight  trans- 
portation accounts — railroad,  express,  wagon,  etc.,  where  such  ex- 
pense is  not  included  in  the  inventory  accounts  for  the  articles  on 
which  incurred. 

The  column  captioned  "Inventories"  has  reference  to  any  or  all 
inventory  accounts  and  the  five  unhcaded  columns  are  for  individual 
inventory  accounts,  such  as  storehouse,  mercantile  stores,  etc. 

Under  the  heading  "Charge  Sheet"  fill  in  the  account  number 
and  amount,  using  letters  for  secondary  charges,  and  numbers  for 
tertiary  charges. 

The  Debit  Notice,  Form  Q-505 ;  Credit  Notice,  Form  9-506; 
Contract  Claim,  Form  7-5.15,  and  Miscellaneous  Claim,  Form  9-546, 
are  to  be  numbered  and  entered  in  the  v.nicher  register,  as  any 
other  voucher  would  be. 

The  voucher  register  should  be  closed  promptly  at  the  end  of 
the  month,  and  the  total  of  its  various  items  carried  to  the  statement 
of  vouchers   paid,   Form  7-59.I,   which  is  to  be  given  to  the  book- 


78 

keeper  for  transfer  to  the  cost  and  general  ledgers,  as  the  figures 
shown  thereon  will  be  needed  by  him  to  verify  the  results  of  the 
month's  operations. 

The  totals  for  each  page  should  be  entered,  one  being  page 
total,  and  the  other  the  total  disbursements  to  date. 

Cost  ledger  {Form  7-608)  ;  summary  of  cost  ledger  accounts 
{Form  7-609)  ;  general  ledger  {Form  7-610) — Instruc- 
tions concerning-  the  use  of  these  books  are  as  follows : 

Cost  ledger. — In  the  cost  ledger  the  various  accounts  should  be 
arranged  in  the  same  numerical  order  as  shown  in  the  local  account 
number  classification  book. 

Each  sheet  shows  twelve  money  columns  and  the  same  number 
of  "Unit  Cost"  columns.  These  are  for  the  purpose  of  showing  a 
monthly  comparison  of  cost  figures  for  a  year.  The  "Unit  Cost" 
columns  can  not  be  filled  in,  however,  without  reference  to  the  cost 
keeper,  who  should  provide  the  figures  to  complete  the  statement 
each  month. 

After  filling  in  the  spaces  for  "Project,"  "Folio  No.,"  and 
"Feature,"  the  bookkeeper  should  open  the  ledger  with  an  account 
with  each  feature  from  which  balances  have  been  brought  down, 
according  to  this  classification,  and  insert  the  account  numbers 
under  each  subdivision,  and  the  name  of  the  account  the  number 
represents,  in  the  same  order  as  shown  by  the  local  account  number 
classification  book. 

When  new  numbers  are  added  or  new  subdivisions  created,  the 
bookkeeper,  and  others  interested  in  compiling  the  figures  used  in 
making  up  the  various  cost  accoimts  should  be  notified. 

The  main  channels  for  entry  to  the  cost  ledger  are : 

(a)  Inventory  accounts  and  other  direct  charges  from  the 
voucher  register. 

(b)  Statement  of   vouchers   paid,   Form   7-594. 

(c)  General  classification  book.  Form  7-580. 

(d)  Statement   distribution   of   storehouse   issues,    Form   7-600. 

(e)  Statement  issues  from  inventory  account.  Form  7-601. 

(f)  Journal  vouchers.  Form  7-593. 

Care  should  be  taken  to  see  that  every  item  of  expense  is  posted 
to  the  cost  ledger,  when  a  trial  balance  should  be  taken,  and  the 
figures  verified,  the  balance  agreeing  with  the  cost  ledger  account  in 
the  general  ledger.     If  this  is  found  to  be  true,  close  the  accounts 


79 

in  the  cost  ledger  and  complete  tlie  building  and  incidental  operation 
expense  statement,  form  7-599. 

The  space  provided  for  "Summary,"  "Month,"  and  "Amounts" 
should  be  filled  in  when  every  feature  account  in  the  ledger  is 
closed. 

Make  out  the  several  project  monthly  cost  reports,  form  7-602, 
which  are  to  be  forwarded  to  the  office  of  the  Chief  Engineer,  where 
they  will  be  transferred  to  a  cost  ledger,  and  rtummary  of  cost 
ledger  accounts  kept  for  each  project. 

Summary  of  cost  ledger  accounts. — These  sheets  are  intended 
to  show  all  feature  accounts  and  a  comparison  of  their  total  cost 
and  unit  costs,  month  by  month,  as  the  work  progresses.  The  first 
and  last  columns,  "Balance  ist  of,"  are  for  bringing  forward  the 
total  cost  for  each  feature  from  the  summary  column  in  the  cost 
ledger. 

Spaces  provided  for  "Project"  and  "Folio  No."  should  be  filled 
in,  and  the  column  marked  "Accounts."  Fill  in  trie  name  of  the 
feature.  The  total  of  the  accounts  shown  in  the  summary  should 
balance  with  ithe  total  of  the  cost  ledger  or  the  cost  ledger  account 
in  the  general  ledger. 

General  Ledger. —  Pages  for  the  general  ledger  should  be  placed 
in  binder,  immediately  after  summary  of  cost  ledger  accounts. 

Fill  in  spaces  provided  for  "Project,"  "Fclio  No.,"  "Name,"  etc. 

The  initials  J.  V.,  V.  R.,  and  C.  L.  in  the  three  columns  rep- 
resent journal  voucher,  voucher  register,  and  cost  ledger,  and  are 
for  the  insertion  of  numbers. 

The  general  use  to  which  the  form  is  to  be  put  needs  no  further 
explanation. 

Enter  in  the  book  all  cr-ntrolling  accounts  and  all  other  accounts 
not  carried  in  the  cost  ledger.  In  this  book  should  appear  inventory 
accounts  of  one  kind  or  another,  the  details  of  which  may  be  carried 
in  another  part  of  the  general  ledger.  An  account  should  also  be 
kept  with  labor,  pay  rolls,  or  unpaid  labor,  the  details  of  which 
should  be  shown  on  distribution  of  labor  statement,  form  7-597.  and 
statement  of  unpaid  labor,  form  7-591-  The  balance  should  agree 
with  the  general  ledger  accoimt  of  the  same  name. 

After  these  accounts  are  closed  at  the  end  of  the  month,  a 
comparative  balance  sheet  should  be  drawn  off,  showing  the  balance 
of  each  account  in  the  general  ledger. 


80 

Journal  voucher  (form  7-593) — Instructions  on  back. 
Statement  of  vouchers  paid  (Form  7-594) — Instructions  on 

back. 
Statement  of  unpaid  labor  account  (Form  7-591) — Instruc- 
tions on  back. 
Distribution  of  labor  statement  (Form  7-597) — Instructions 

on  back. 
Statememi,  issues  from  inventory  account   (Form   7-601)  — 

Instructions  on  back. 
Statement,  distribution  of  storehouse  issues  (Form  7-600)  — 

Instructions  on  back. 
Building  and  incidental  operation  expense  statement  (Form 

7-599) — Instructions  on  back. 
.General  classification  book  (Form  7-580) — The  instructions 

for  the  use  of  the  general  classification  book  are  as  follows : 

Insert  a  sufficient  number  of  pages  in  the  binder  to  cover  the 
account  numbers  shown  in  the  account  number  book.  Number  the 
pages  seriall}',  except  the  first  two,  which  are  to  allow  for  the 
classification  of  account  numJiers  i  to  9,  inclusive.  After  the  pages 
have  been  numbered,  page  i  will  show  the  distribution  of  accounts 
Nos.  10  to  19.  inclusive;  page  45,  of  accounts  Nos.  450  to  459,  in- 
clusive, etc.  In  this  way  each  account  may  be  readily  found.  In  cases 
where  certain  accounts  are  no  longer  active  by  reason  of  the  com- 
pletion of  the  work  which  they  represent,  pages  for  them  maj'  b^e 
omitted. 

A  rubber  stamp  may  be  used  to  insert  name  of  project  and  of 
feature  account. 

At  the  end  of  the  month  all  items  forming  integral  parts  of  cost , 
data  will  be  distributed  in  this  book.  The  charge  for  labor  will  be 
taken  from  the  recapitulation  of  the  time  books.  The  charge  for 
articles  or  materials  furnished  by  storehouses  or  the  mercantile 
stores  will  be  taken  by  totals  from  the  books  set  apart  for  the  dis- 
tribution of  such  charges  during  the  month,  and  a  percentage  for 
freight  charges  should  be  added,  unless  the  expense  for  freight  is 
directly  included  in  costs  of  articles  as  shown  on  the  requisition. 
Other  charges,  such  as  direct  charges  from  the  voucher  register, 
power,  corrals,  lumber,  cement,  shop  orders,  etc.,  will  also  be  added. 


81 

so  that  the  total  of  the  distribution  for  the  month  will  be  the  total 
of  the  cost  ledger  account  in  the  general  ledger  less  credits  to 
boarding-house,  or  mess,  accounts,  and  accounts  of  a  similar  nature, 

In  order  to  avoid  journalizing,  credits  may  be  taken  up  on  this 
book  and  carried  to  the  proper  accounts  later. 

The  suggestion  is  made  that  pencils  or  inks  of  various  colors 
be  used  to  enter  certain  classes  of  cost  data.  For  instance,  black 
ink  or  pencil  for  issues  of  various  kinds ;  red  mk  or  pencil  for 
services ;  purple  ink  or  pencil  for  corrals,  etc.  This  plan  may 
frequently  save  much  time  in  tracing  charg'es. 

An  account  should  be  kept  in  the  classification  book  each  month 
with  each  of  such  issuing  departments  as  storehouses  and  mercantile 
stores,  in  order  that  the  project  offices  may  be  fully  informed  as 
to  existing  conditions.  Enter  every  day,  opposite  the  proper  date, 
from  the  office  copies  of  the  requisition  blanks,  according  to  ac- 
count numbers,  the  money  value  oi  the  issue  of  such  departments. 
A  recapitulation  of  these  daily  issues  or  sales  may  be  kept  on  a 
blank  page  of  the  book,  so  that  on  each  day  the  office  may  know 
the  total  money  value  of  the  stock  on  hand,  and  be  able  to 
check  up  the  clerks  in  charge  without  waiting  until  the  end  of  the 
month.  *  By  the  end  of  the  month  the  storehou.se  and  mercantile 
stores  distribution  will  have  been  completed,  and  all  that  will  be 
necessary  to  verify  the  figures  will  be  to  see  that  the  totals  o'f  the 
pages  in  the  classification  book  equal  the  total  of  the  recapitulation. 
In  entering  the  amounts  by  account  numbers  fioiii  the  requisition 
blanks  care  should  be  taken  to  see  that  the  total  of  the  amaunts 
entered  equals  the  total  of  all  the  requisition  slips  for  a  particular 
day's  business. 

The  totals  of  the  monthly  debits  or  credits  to  each  account 
when  segregated  in  this  book  by  account  numbers  should  be  carried 
to  the  cost  ledger  in  one  amount,  under  date  of  the  last  day  of  the 
month. 

After  all  costs  have  been  carried  to  the  cost  ledger,  take  the 
leaves  out  of  the  book,  bind  them  t(igethcr,  and  file  with  former 
parts  in  serial  order  for  future  reference. 

In  entering  each  day's  isstics  in  the  general  classifica- 
tion book  from  the  requisitions,  care  should  be  taken  that 
the  amounts  have  been  correctly  entered.  It  would  be  well 
to  use  the  addins:  machine  to  ascertain  first  the  total  amount 


82 

of  the  requisitions,  and  later  ascertain  the  total  amount  dis- 
tributed by  account  numbers  in  the  book.  File  requisitions 
for  each  day's  business  together  where  they  can  be  referred 
to  readily. 

If  the  project  has  more  than  one  storehouse,  the  requisi- 
tions for  each  storehouse  should  be  filed  separately.  In  case 
a  storehouse  makes  no  issue  on  a  particular  day,  file  a  dummy 
to  represent  that  day's  business,  marking  thereon  "no  issue." 
This  may  later  aid  a  clerk's  memory,  provided  he  is  at 
a  loss  to  know  why  that  day's  issues  are  not  in  the  files. 

Summary. — In  addition  to  the  forms  listed  above,  every 
project  office  should  open  a  personal  ledger — any  loose-leaf 
ledger  form  would  fulfill  the  requirements.  In  such  a  book 
should  be  listed  the -invoices  of  all  firms  submitting  invoices, 
crediting  them  with  the  accounts  as  rendered — giving  date 
of  invoice  and  amount,  purchase  order  number,  request  for 
purchase  order  number,  and  all  necessary  information ;  and 
when  the  account  is  finally  paid,  give  date  of  payment, 
number  of  voucher  (office  copy),  check  number,  depository 
and  amount,  etc.,  etc.  This  book  makes  the  office  force 
anxious  to  pay  bills  promptly  and  aid  in  obtaining  better 
prices.  It  will  also  aid  greatly  in  checking  back  an  account 
with  a  merchant  who  disputes  the  accuracy  of  the  amount  of 
his  check,  and  save  an  endless  amount  of  time  in  looking  over 
old  vouchers.  Under  no  circumstances  should  an  account 
remain  unpaid  in  a  project  office  for  a  period  of  over  thirty 
days,  unless  the  same  is  held  up  for  some  good  reason.  This 
ledger  should  be  balanced  as  soon  as  an  account  is  disposed 
of,  and  its  credit  total  carried  to  the  unpaid  bills  account  in 
the  general  ledger. 


83 


ENGINEERING  CONSTRUCTION  COSTS. 

There  is  no  subject  in  which  there  has  been  such  con- 
stant and  growing  interest  within  the  last  decade  as  in  en- 
gineering construction  costs.  The  importance  of  systematic 
records  of  cost  of  work  is  fast  becoming  fully  realized.  The 
Reclamation  Service,  as  well  as  modern  manufacturers,  con- 
tractors, and  engineers  in  general,  are  initiating  methods  of 
obtaining  this  kind  of  information  and  are  attempting  to  put 
it  to  practical  use. 

The  purpose  of  keeping  such  costs  is  two-fold ;  first,  it 
enables  the  engineer  to  adopt  the  most  economical  methods 
and  to  select,  arrange,  and  operate  his  machinery  and  men  in 
the  most  economical  manner;  and,  second,  it  enables  him  to 
estimate  and  analyze  the  cost  of  proposed  work  with  intelli- 
gence and  precision.  Engineering  construction  costs  are, 
therefore,  the  fundamental  data  of  estimates  and  execution 
of  engineering  work ;  and  the  engineer  who  tries  to  get  along 
without  them  draws  conclusions  without  known  premises. 
The  almost  inevitable  results  of  such  conclusions  are  extrav- 
agance and  loss.   / 

For  the  first  purpose,  a  sufficiently  minute  classification 
is  requisite  to  give  the  engineer  a  clear  conception  of  the 
results  which  are  being  accomplished,  thereby  enabling  a 
comparison  of  cost  of  work  in  one  locality,  or  cost  of  any 
particular  feature  of  the  project  with  the  cost  of  similar  work, 
or  of  a  similar  feature  elsewhere  located.  To  fully  meet  this 
requirement,  careful,  but  not  too  minute  classification  is 
requisite. 

For  the  second  purpose,  information  in  detail  carefully 
classified  is  required,  but  indefinite  duplication  of  results  is 
of  continually  decreasing  value. 

To  secure  uniformity  in  the  keeping  of  cost  accounts, 
and  to  insure  that  cost  keeping  is  carried  sufficiently  far  to 


84 

be  advantageous,  and,  on  the  other  hand,  to  insure  that  it  is 
not  carried  too  far  to  be  practical,  the  following  rules  should 
be  observed : 

1.  Separate  accounts  should  be  kept  for  each  project 
feature  that  is  estimated  to  cost  more  than  $1,000.00. 

2.  Features  ranging  in  cost  from  $300.00  to  $1,000.00 
may  or  may  not  be  treated  separately,  at  the  option  of  the 
supervising  engineer,  according  to  local  conditions ;  and 

3.  Small  similar  features,  each  estimated  at  less  than 
$300.00,  shall  be  grouped,  unless  special  reason  exists  for 
treating  one  or  more  thereof  separately. 

PROJECT,  DAILY  AND  MONTHLY  FEATURE  RE- 
PORTS AND  PROJECT  ENGINEERS  COST 
DATA  CARDS. 

Engineers,  superintendents,  foremen,  and  others  having 
charge  of  structural  or  building  work  of  any  description 
should  send  in  to  the  project  office  a  daily  report  showing  the 
number  and  classification  of  men  and  animals  employed  on 
certain  features  of  that  work,  the  rate  of  pay,  unit  of  cost, 
etc.  This  report  should  also  include  the  cost  of  such  items  as 
sacks  of  cement,  lumber,  structural  iron,  and  other  material 
or  supplies  used  or  entering  into  the  work.  These  figures 
can  be  obtained  from  the  copies  of  the  requisition  blanks 
returned.  The  final  results  should  then  be  shown — such  as 
number  of  feet  of  pipe  made,  cubic  yards  of  concrete  placed, 
cubic  yards  of  rip-rapping  laid,  or  cubic  feet  of  tunnel  driven, 
and  the  unit  cost.  These  statements  should  then  be  followed 
up  with  remarks  as  to  distance  from  the  nearest  railroad 
point  of  shipment;  weather  conditions  (extremes  of  temper- 
ature) ;  labor  conditions  (difficulty  of  obtaining  men,  high  or 
low  price  paid)  ;  road  conditions  (whether  they  are  in  good 
or  poor  shape  for  traveling,  and  likely  to  afifect  the  costs  of 


85 

tiauling  of  material  or  supplies),  and  market  conditions  (in- 
ability to  obtain  materials  or  supplies  on  account  of  shortage, 
etc.,  etc.).  In  short,  the  remarks  should  be  made  so  com- 
prehensive as  to  take  into  consideration  any  condition,  usual 
or  unusual,  which  might  contribute  in  any  way  to  affect  the 
unit  cost — such  as  floods,  fires,  etc. ;  for  as  this  information 
will  go  later  into  the  project  monthly  cost  report,  form  7-602 
(instructions  on  back), which  is  sent  to  the  office  of  the  Chief 
Engineer,  it  can  not  be  too  complete,  for  that  office  will  send 
out  cost  data  in  comparative  form  to  all  projects,  and  unless 
these  conditions  are  fully  set  forth  the  data  would  be  of  very 
little  practical  value. 

It  has  been  found  to  be  impracticable  to  furnish  uniform 
blanks  for  these  feature  reports.  The  work  on  ail  the 
projects  is  so  diversified  and  the  operations  which  are  being 
carried  on  vary  in  so  many  dififerent  ways,  the  desires  of 
individual  engineers  as  to  what  should  be  the  analysis  of 
certain  costs  are  so  varied  that  it  would  appear  best  to  have 
these  forms  mimeographed  at  the  project  offices  and  sent 
out  to  those  who  are  to  use' them.  In  some  cases,  when  the 
same  class  of  work  will  be  done  daily  for  a  long  time,  pur- 
chase orders  for  the  printing  of  such  blanks  may  be  sent  to 
the  office  of  the  Chief  Engineer.  These  forms,  if  mimeo- 
graphed locally,  can  be  revised  from  time  to  time,  at  the 
instance  of  the  project  engineer  and  his  cost  clerk,  after  con- 
sultation with  those  who  are  to  use  them.  These  daily  reports 
should  show  not  only  the  amount  of  work  done  each  day  on 
a  particular  project  feature  and  give  the  cost  of  the  same, 
but  act  as  a  check  on  the  timekeeper  and  show  the  project 
office  whether  the  various  engineers,  superintendents,  fore- 
men, and  others  are  exercising  good  judgment  in  making 
requisitions  on  the  storehouses,  etc.  These  daily  reports 
should,  as  far  as  practicable,  be  checked  against  the  time 
books  at  the  end  of  the  month.    They  also  enable  the  project 


86 

engineer  to  watch  carefully  every  item  of  cost  entering 
into  a  particular  piece  of  work  and  make  it  possible  for  him 
to  stop  excessive  charges  at  any  date  without  waiting  until 
the  end  of  the  month.  Daily  feature  reports  from  several 
projects  have  been  printed  as  samples. 

These  daily  feature  reports  should  at  the  end  of  the 
month  be  supplemented  by  a  rrtonthly  feature  report,  which 
can  be  made  up  in  the  office.  These  reports  would  embody 
practically  all  the  information  contained  in  the  daily  reports 
and  should  be  sent  out  to  all  engineers,  superintendents, 
foremen,  and  others  who  are  doing  the  same  class  of  work. 
Such  a  plan  has  been  found  to  engender  a  friendly  spirit  of 
rivalry  among  those  concerned  which  generally  results  in 
smaller  cost  and  better  work. 

Under  the  heading  of  monthly  feature  reports  would 
also  be  classed  such  comparative  reports  as  subsistence  and 
forage.  Such  reports  should  be  based  on  an  inventory 
which  all  camps  or  corrals  would  be  required  to  turn  in 
promptly  at  the  end  of  each  month.  When  these  compara- 
tive reports  have  been  made  out,  copies  should  be  sent  to 
each  steward,  cook,  corral  foreman,  or  others  interested, 
generally  with  the  result  that  costs  are  kept  down.  These 
reports  are  also  necessary  in  order  that  the  project  may  not 
be  subsisting  its  employees  at  a  loss  of  money.  In  cases 
where  the  cost  of  feeding  either  an  employee  or  an  animal 
is  found  to  be  excessively  high,  the  attention  of  those  re- 
sponsible for  the  conduct  of  the  particular  camp  should  be 
called  to  the  matter  in  order  that  abuses  may  be  corrected. 
A  few  samples  of  monthly  feature  reports  have  been  printed. 

Each  project  engineer  should  have  on  his  desk  a  card 
cabinet  showing  such  costs  as  subsisting  various  camps, 
feeding  animals,  concreting,  excavating,  and  the  many  sub- 
divisions of  his  project  work.  These  cards  may  be  ar- 
rangetl  to  show  comparison  by  months  of  features  finished 


87 

or  incomplete,  etc.,  so  that  the  project  engineer  may  always 
be  in  a  position  to  know  ^t  any  time  not  only  what  a  fin- 
ished structure  has  cost  the  project,  but  what  one  is  costing 
from  day  to  day.  The  cost  clerk  should  sec  that  the  project 
engineer  is  relieved  of  any  detail  work  in  obtaining  these 
cost  figures,  and  that  the  engineer's  wishes  are  anticipated 
in  procuring  cost  information.  These  cards  should  be  ac- 
companied by  sketches  and  such  notes  as  will  explain  read- 
ily any  apparently  excessive  prices.  Such  a  card  system 
enables  the  engineer  to  issue  frequent  instructions  to  his 
subordinates  in  regard  to  the  cost  or  amount  of  their  work, 
and  also  aids  him  in  making  special  reports  on  certain  project 
features  to  the  Chief  Engineer.  These  cost  data  are  val- 
uable not  only  to  the  local  or  project  engineer,  but  also  to 
the  Chief  Engineer,  who  is,  on  account  of  such  data,  better 
able  to  figure  on  work  of  a  similar  nature. 

The  value  of  the  cost  data  kept  by  the  project  engineer 
will  depend  largely  upon  the  daily  and  monthly  feature  re- 
ports, and  reference  will  have  to  be  made  to  them  in  order 
to  make  out  the  monthly  project  cost  report  for  the  Chief 
Engineer. 

As  in  the  case  of  daily  and  monthly  reports,  it  has 
been  found  impossible  to  devise  a  form  or  size  of  card  accept- 
able to  all  projects  and  therefore  these  details  are  left  to  the 
project  engineer  and  his  cost  clerk.  Samples  of  cards  used 
on  certain  projects  have  been  printed. 

CONTRACTOR'S  COSTS. 

The  reasons  for  the  determination  of  contractor's  costs 
are  to  furnish  information  in  regard  to  (A)  the  profits  or 
losses  of  the  contractor;  (B)  the  probable  ability  of  the  con- 
tractor to  complete  his  contract;  and  (C)  unit  costs  which 
are  of  value  in  determining  estimates  of  cost  and  reason- 
ableness of  bids  for  future  similar  work. 


The  plans  outlined  in  the  foregoing  pages  contemplate 
the  handling  of  such  cost  accounts  as  the  project  engineer 
may  desire  to  be  kept,  and  where  he  has  control  of  the  or- 
ganization this  may  be  readily  accomplished,  but  in  obtain- 
ing costs  of  contractor's  work,  individual  preference  and 
ingenuity  must  largely  govern  the  method  of  procedure.  As 
a  general  rule  it  would  be  well  to  induce  the  contractor  to 
use  the  forms  prepared  for  the  use  of  members  of  the  Recla- 
mation Service,  to  furnish  him  the  forms  without  cost,  and 
even  to  engage  the  services  of  his  timekeepers  in  this  work. 
Most  contractors  engaged  in  construction  work  for  the 
Reclamation  Service  have  no  particular  system  of  account- 
ing, this  being  particularly  true  of  such  contractors  as  sub- 
let their  work,  who  are  interested  only  in  obtaining  their 
particular  profit.  It  will  be  difficult  to  get  such  a  contrac- 
tor to  adopt  an  up-to-date  accounting  scheme;  but  where 
a  contractor  is  not  subletting  his  work,  he  may  be  only  too 
glad  to  use  the  Service  forms,  particularly  if  it  were  made 
an  object  to  him.  Such  a  plan  would  work  to  the  advantage 
of  the  contractor  as  well  as  to  the  Reclamation  Service,  as 
it  would  mean  a  direct  check  on  his  expenditures,  and  serve 
to  save  the  contractor  money.  With  the  contractor  who  has 
his  own  system  of  accounting,  however,  it  would  be  difficult 
to  make  any  such  arrangement,  in  which  case  the  duties  of 
timekeepers,  inspectors  and  others  on  this  class  of  work,' 
will  be  made  much  more  arduous.  A  number  of  plans  for 
obtaining  this  class  of  information  have  been  formulated 
by  members  of  the  Reclamation  Service,  each  one  showing 
considerable  thought  and  study,  but  differing  in  all  essen- 
tial features.  Probably  every  engineer  in  the  Service  has 
some  plan  for  collecting  contractor's  costs,  and  the  follow- 
ing, based  largely  upon  all  of  these  plans,  is  offered  for 
consideration  : 

A  comprehensive  method  of  cost  keeping  must  be  based 


89 

on  a  logical  analysis  of  the  elements  of  cost  pertaining  to 
the  work  under  consideration.  The  degree  to  which  the 
analysis  should  be  carried  depends  on  the  magnitude  of  the 
work.  On  small  jobs  a  close  analysis  is  both  practical  and 
desirable,  but  on  large  works  of  varied  character,  such  as 
those  being  constructed  by  contractors  for  the  United  States 
Reclamation  Service,  in  which  the  necessity  for  a  method 
adapted  to  all  items  of  classification  of  work  exists,  it  is  not 
advisable  to  enter  into  laborious  refinement.  For  such  en- 
gineering work  the  methods  adopted  by  the  Reclamation 
Service  require  the  distribution  of  costs  under  the  follow- 
ing heads :  interest  investment ;  preparatory  expenses ;  plant 
depreciation ;  materials ;  supplies ;  executive ;  labor  and  en- 
gineering. These  heads  are  defined  to  cover  expenses  as 
outlined  below :  ( i )  Investment  interest.  All  charges  for 
insurance,  bond  premium,  and  interest  on  cash  and  bor- 
rowed capital.  (2)  Preparatory  expenses.  All  charges 
for  the  construction  of  roads,  erection  and  drainage  of 
camps,  delivery  and  installation  of  plant  and  other  expenses 
involved  before  the  actual  construction  begins.  (3)  Plant. 
All  charges  for  repairs,  and  the  depreciation  of  all  property 
employed  in  the  operations  by  which  the  finished  product  is 
made,  but  which  does  not  enter  that  product  and  is  not  con- 
sumed in  such  operations,  excepting  as  to  wear  and  tear. 
Plant  includes  real  estate  and  improvements  thereon,  ma- 
chinery (both  fixed  and  movable),  tools,  instruments,  vehi- 
cles, animals  owned,  etc.  (4)  Materials.  All  charges,  in- 
cluding freight,  for  property  that  enters  into  and  remains 
a  part  of  the  fi.nished  product.  Materials  often  refers  to 
raw  material,  but  it  should  be  noted  that  the  finished  prod- 
uct of  one  operation,  sometimes  called  stock,  often  be- 
comes the  raw  material  of  a  subsequent  operation,  and  is 
then  designated  in  the  latter  organization  as  stores.  (5) 
Supplies.     All  charges,  including  freight,  for  property  that 


90 

is  used  upon  and  wholly  consumed  in  the  operations  by 
which  the  finished  product  is  made.  (6)  Executive.  All 
charges  for  salaries  of  superintendents,  foremen,  time  keep- 
ers, clerks,  watchmen,  and  for  other  general  administrative 
expenses.  (7)  •  Labor.  All  charges  for  hire  of  teams  and 
of  skilled  and  common  labor  not  classified  in  executive. 
(8)  Engineering.  All  charges  for  salaries  of  engineers 
and  inspectors. 

The  distinction  between  materials,  supplies,  and  plant 
is  not  always  an  easy  one  to  make  in  advance  of  their  use, 
though  when  the  articles  are  actually  employed  in  produc- 
tive operations  there  should  be  no  difficulty  in  deciding  into 
which  class  any  article  should  go.  In  some  instances  the 
same  substance  is  differently  classified,  according  to  the 
disposition  that  will  be  made  of  it.  Timber  may  be  sawec^ 
into  lumber  and  become  material  for  the  manufacture  of 
furniture,  or  it  may  be  transformed  into  plant  by  the  en- 
largement of  the  factory  or  it  may  be  cut  into  cord  wood 
and  become  supplies  for  use  as  fuel. 

But  whether  it  is  easy  or  difficult  in  any  case  to  draw 
the  distinction  between  the  three  classes  of  stores,  the  reason 
for  such  distinction  is  sound.  It  is  possible  to  measure  the 
quantity  of  materials  used  in  each  article  of  the  project,  and 
there  need  be  no  estimate  whatever.  It  is  possible  to  meas- 
ure the  quantity  of  supplies  used  upon  the  product  for  a 
certain  period,  but  an  estimate  is  necessary  in  distributing 
such  expense.  It  is  impossible  to  measure  accurately  de- 
preciation or  wear  and  tear  of  plant,  and  both  the  amount 
of  such  expense  and  its  distribution  must  rest  on  estimates. 
It  is  plain  that  the  most  accurate  results  are  obtained  by  so 
classifying  expenses  as  to  group  those  in  which  the  elements 
of  uncertainty  and  estimate  are  absent  or  at  the  minimum 
or  at  the  maximum. 

In  order  to  distribute  the  costs  properly  in  this  system. 


91 

they  should  be  charged  directly  to  the  items  of  the  contract 
to  which  they  apply,  where  possible,  and  should  be  other- 
wise prorated  during  the  continuance,  or  at  the  completion 
of  the  contract.  For  the  purpose  of  facilitating  the  keeping 
of  costs  and  of  giving  full  value  to  the  results,  the  contract 
items  should  be  carefully  classified  in  specification  sched- 
ules, so  as  to  require  bids  on  each  distinctive  class  of  work 
having  a  common  cost. 

The  collection  of  data  for  this  method  of  cost  keeping 
should  be  made  by  means  of  the  time  and  material  distribu- 
tion system.  In  the  time  book  several  pages  should  be  de- 
voted to  the  records  of  a  single  contract  item,  the  entries 
being  made  under  the  heads  of  Engineering,  -Executive,  and 
Labor.  The  time  book  may  also  be  used  as  a  material  book, 
in  which  charges  against  each  contract  item  should  be  sim- 
ilarly made  under  the  heads  of  Plant,  Alaterial.  and  Sup- 
plies, etc. 

The  information  contained  in  the  time  and  material 
books  should  then  be  carried  forward  at  the  end  of  each  day 
to  the  general  classificafion  book,  and  at  the  end  of  the 
month,  the  totals  shown  in  this  book  should  be  carried  to 
separate  leaves  in  the  same  book,  after  entries  have  been 
made  for  the  monthly  estimates,  and  unit  costs  have  been 
distributed  under  the  various  headings.  It  may  frequently 
happen  that  the  cost  keeper  on  contractors'  cost  may  be  able 
to  apply  the  principles  of  the  account  number  system  in  dis- 
tributing his  costs  in  the  general  classification  book ;  and 
when  this  is  feasible,  it  should  be  done.  If  it  is  not  fea- 
sible, however,  he  should  insert  the  names  instead  of  the 
number,  but  this  is  left  to  his  own  discretion. 

In  this  general  classificfition  book  accounts  should  be 
carried  with  each  item  of  the  contract,  secondary  charges 
being  made  under  the  proper  heads  hereinbefore  mentioned. 
Certain  charges,  such  as  those  against  investment  interest, 


92 

preparatory  expense,  and  portions  of  others,  are  necessarily 
carried  forward  en  masse  until  the  completion  of  the  con- 
tract, at  which  time  distribution  is  made  among  the  items 
of  the  contract.  The  methods  employed  in  collecting  con- 
tractors' costs  are  those  which  pertain  to  ordinary  construc- 
tion work  with  such  variations  as  may  be  necessary  in  each 
case.  Statistics  of  productive  labor,  materials,  and  supplies 
are  collected  by  inspectors.  Unit  prices  of  labor,  materials, 
and  supplies  may  be  assumed  at  market  rates,  or,  if  the  con- 
tract requires  it,  as  is  frequently  the  case,  the  contractor 
may  be  requested  to  furnish  these  and  other  data  which  can- 
not be  readily  collected  by  inspectors.  It  may  be  necessary 
and  desirable  to  estimate  many  of  the  details  of  such  costs. 
For  example,  in  the  case  of  horses  owned  by  the  contractor, 
it  is  frequently  more  satisfactory  to  reckon  the  cost  of  their 
work  on  the  basis  of  current  rates  for  hiring  animals  rather 
than  to  determine  the  cost  of  maintaining  them  and  to  esti- 
mate depreciation,  etc. 

While  figures  are  always  essential  to  the  usefulness  of 
cost  data,  it  is  recognized  that  a  complete  knowledge  of  the 
conditions  affecting  component  prices  is  equally  imperative. 
The  character  of  machinery,  the  conditions  of  labor,  the 
geography  of  the  work,  the  topography  of  the  site  of  the 
work,  the  proximity  of  constructing  material,  the  condition 
of  the  weather,  and  other  similar  circumstances  are  all  im- 
portant matters  for  record.  Entries  in  the  time  books  of 
these  elements  of  cost  should,  therefore,  be  made  by  the 
timekeepers.  The  costs  as  reported  should  be  divided  into 
two  parts,  (A)  those  which  are  determined  accurately,  and 
(B)  those  which  are  estimated.  The  accompanying  ex- 
planations should  be  so  complete  that  other  persons  using 
the  data  may  be  able  to  judge  their  value  and  the  limits  of 
their  accuracy. 

In  addition   to   keeping   the  field   records,   as   outlined 


93 

above,  it  is  essential  to  keep  the  office  of  the  Chief  Engineer 
informed  of  the  monthly  progress  and  cost  of  the  work 
being  done  in  the  field.  For  this  purpose  blank  forms  have 
been  devised — Forms  7-530  and  7-537  (See  instructions  on 
back  of  each).  These  cost  sheets  have  been  so  designed 
as  to  make  it  possible  to  copy  the  information  required  by 
them  directly  from  the  engineering  costs,  as  shown  in  the 
general  classification  book.  In  the  use  of  these  forms  it  is 
imperative  that  each  engineer  be  painstaking  in  filling  out 
all  of  the  details  of  each  sheet,  and  in  transmitting  them  as 
promptly  as  possible  after  the  end  of  each  month. 

At  the  completion  of  each  contract  the  accounts  of  the 
items  thereof  should  be  closed  after  making  the  proper  dis- 
tributions of  the  various  expenses  on  all  of  the  items.  The 
office  of  the  Chief  Engineer  should  then  be  immediately 
supplied  with  the  resulting  data.  For  the  transmission  of 
this  information  blank  form  9-548  has  been  prepared.  (See 
instructions  on  back).  This  form  is  intended  to  incorporate 
a  report  on  and  an  analysis  of  the  cost  of  one  item  of  a  con- 
tract, both  the  contractor's  cost,  and  the  actual  construction 
cost,  a  separate  sheet,  therefore,  being  used  for  each  item 
of  the  contract  schedules. 

After  the  completion  of  the  various  classifications  for 
each  month's  business,  the  sheets  can  be  taken  out  of  the 
general  classification  book  and  filed  for  future  reference, 
but  the  sheets  kept  in  the  back  of  the  book  should  be  left 
in  the  binder,  unless  the  cost  keeper  desires  to  carry  these 
records  forward  to  a  regular  ledger  form,  the  use  of  which 
is  left  optional  with  him,  but  it  is  not  advised. 

If,  however,  the  use  of  any  form  of  ledger  seems  ab- 
solutely necessary  in  collating  contractor's  costs,  the  cost 
ledger  should  be  used. 


94 


CORRESPONDENCE  AND  LETTER  FILES. 

All  letters  emanating  from  project  ofifices  should  be 
written  in  duplicate,  the  carbon  copy  being  kept  for  ref- 
erence. Letters,  orders,  bills,  etc.,  should  be  filed  in  vertical 
sectional  cabinets.  To  each  regular  correspondent  a  sep- 
arate folder  should  be  assigned  on  which  the  name  of  the 
correspondent  should  be  plainly  written.  These  folders 
should  be  arranged  alphabetically,  and  all  papers  placed 
therein  should  be  filed  in  regular  order  of  dates.  It  is  gen- 
erally preferable  to  file  bills  and  orders  in  a  separate  sec- 
tion from  those  containing  letters.  It  may  be  desirable  to 
file  papers  of  a  technical  character  or  letters  of  the  project 
engineer  by  subjects,  in  which  case  the  cross  reference  form 
may  be  useful.  A  files  clerk  should  be  detailed  to  attend 
to  any  duty  necessary  in  connection  with  the  proper  han- 
dling and  filing  of  papers,  and  no  employee  other  than  the 
file  clerk  should  be  allowed  to  have  access  to  the  files. 
Should  the  files  clerk  allow  letters  to  be  taken  from  the  files, 
he  should  make  out  a  dummy  covering  every  such  com- 
munication and  insert  it  in  the  files  in  place  of  the  letter,  so 
that  responsibility  for  its  nonreturn  may  be  fixed.  The 
files  clerk  should  be  instructed  to  file  no  papers  not  marked 
"file"  or  "office  copy,"  and  to  see  that  any  letters  taken  by 
him  from  the  file  baskets  bear  the  initials  of  clerks  who  an- 
swered them.  The  observance  of  a  rule  of  this  character 
may  prevent  the  filing  of  important  papers  that  have  not  re- 
ceived careful  consideration. 


95 
APPROVAL  BY  DIRECTOR. 

It  is  desired  that  all  officers  and  employes  of  the 
Reclamation  Service  carefully  conform  to  the  suggestions 
and  recommendations  contained  in  this  manual  of  field  ac- 
counting. In  particular,  no  printing  should  be  undertaken 
in  the  field  which  relates  to  fiscal  matters  without  submitting 
the  matter  to  the  Director  for  approval.  It  is  desired  that 
in  wording  and  in  the  general  appearance  of  blanks  used 
there  shall  be  uniformity  and  no  change  made  from  the 
methods  proposed,  unless  absolutely  necessary  for  the  proper 
and  economical  conduct  of  business.  Alterations  to  suit 
minor  local  conditions  should  not  be  made,  except  as  above 
noted. 

In  the  preceding  pages  the  instructions  cover  corre- 
spondence with  the  office  of  the  Chief  Engineer  of  the 
Reclamation  Service  on  all  fiscal  matters.  Since  the  time 
these  were  prepared  and  put  in  type  a  change  has  been  made 
in  organization  by  the  designation  of  a  Director  of  the 
Reclamation  Service  on  March  9,  1907.  Following  this 
change  it  is  desired  that  communications  which  relate  to 
fiscal  affairs  be  sent  to  the  Director  of  the  Reclamation 
Service  instead  of  to  the  Chief  Engineer.  Modifications  will 
be  made  from  time  to  time  in  the  blanks  referred  to  in  this 
manual  as  new  editions  are  ])rinted,  substituting  in  many 
places  the  designation  of  Director  for  that  of  Chief  Engineer. 

The  methods  described  in  this  manual  should  be  put 
in  effect  by  April  i,  1907,  if  practicable,  and  not  later  than 
May  I. 

APPROVED: 

F.  H.  NEWELL. 

Director. 
March  15,  1907. 


UC  SOUTHERN  REGIONAL  LIBRARY  FACILITY 

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